May 18, 2005

Michigan residents with disabilities may now work, earn more money and save more of their earnings without losing their Medicaid coverage. The new Freedom to Work (FTW) Medicaid program under Michigan Public Act 32 of 2003 removes limits that may have kept some individuals with disabilities from working or returning to work. Some individuals with disabilities that access Medicaid through what is known as a "spend-down" or "deductible" are not eligible for the FTW. The Substantial Gainful Activity (SGA) level still applies to individuals who are also recipients of Social Security Disability Insurance (SSDI).

Under Freedom to Work Medicaid, workers with disabilities who are 16 through 64 years old may own a house and car and accumulate other assets up to $75,000. Additionally, unlimited funds may be put aside for retirement.

Enrolled workers with disabilities maintain their Freedom to Work Medicaid eligibility for as much as 24 months if their work is interrupted for involuntary reasons such as medical necessity or layoffs.

For more information, call or visit your case worker at your county office of the Department of Human Services (formerly the Family Independence Agency) and ask about the Freedom to Work Medicaid program described in the Program Eligibility Manual (PEM) number 174.