Here in Wisconsin the income level for BadgerCare (Medicaid) is $980/month which is 100% of the Federal Poverty Level (Walker won't go higher than 100% FPL) and you are allowed $2000 in assets. So the $230/month would bump me over the income level to $1010 and rolling it over to an IRA would either be above the asset level or if I received a payout it would put me over the income level. The food stamp asset level is $2000.
When I become eligible for Medicare in 2 years if I am at or under 100% of the Federal Poverty Level I would be a Qualified Medicare Beneficiary and between Medicaid and Medicare my health care costs would be covered.
The asset limit for that is $7280 as it is for the other levels that allow a higher monthly income but provide less benefits.
So rolling over the pension would bump me above the current asset levels for BadgerCare and for food stamps as well as in the future when I am eligible for Medicare. The $230/month from just doing nothing and taking the pension would bump me above the monthly income levels--just enough where I might actually be better off now than with that $230.
Yes, if I took the lump sum I would pay taxes and lose the BadgerCare and food stamps for a few months until that money was gone and all there would be is my monthly Social Security check but I could pay off bills that would give me over an extra $100/month (significant when you are only getting $780) and make repairs to my mobile home that will allow me to stay here. When the money is spent I can reapply for BadgerCare and food stamps again at my current income level.
The irony seems to be that since the monthly amount I would get would be small but just big enough to disqualify me from the programs that now, but not large enough to make any real difference or make me worse off. Rolling it over puts my asset level too high. Well, I've got about a month to make up my mind.
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