Medicaid Income Guidelines for Children

• Medicaid is a health insurance program for the poor, handicapped and indigent, funded jointly by the federal and state governments and administered by state health officials. While specific coverages vary somewhat by state, Medicaid generally covers catastrophic medical events, hospitalization, mental health benefits, basic nursing home services and medical care for children in poor families and poor pregnant women.

Income Guidelines

• Specific income guidelines for Medicaid eligibility vary by state. Further, a number of programs under Medicaid provide coverage to children even if their parents make too much money to qualify. Federal law requires states to cover children under 6 years old where the family income is under 133 percent of the federal poverty line, though individual states can provide more generous benefits.

Children Older Than Six

• Federal Medicaid guidelines require states to cover children in households with incomes below the federal poverty line until they reach age 19. The federal poverty line varies with family size, but the threshold for a family of four, as of 2010, is $22,050.

Foster Children

• Medicaid covers foster children and children receiving adoption assistance under Title IV - E of the Social Security Act.

Resource Guidelines

• The federal government has published guidelines on the amount of assets the government allows before disqualifying an individual or family for medicaid benefits. As of 2010, the federal guideline is that individuals should be allowed $2,000 in assets and couples and families should be allowed $3,000. Individual states can provide for more generous limits. Most states exempt certain kinds of assets, such as home equity, from this calculation.