Income level for Medicaid is determined by your Social Security Income (SSI) benefit level. Many states use the federal SSI levels, and caps may be set at three times your SSI benefit level. No spend down is allowed and any excess will disqualify you in these states. Eligibility levels for elderly and disabled persons may differ from other populations and may require a spend down. A spend down can occur when a person’s income is higher than the income limit for Medicaid. The person’s medical bills are subtracted from his or her income over a six-month period. Check with your state’s Medicaid program for the current income level requirements.