It’s not an issue for SSDI or Medicare, but it could be for Medicaid. Many Medicaid programs limit your countable assets to $2,000.
If you spend or shelter the funds before the end of the calendar month in which you receive the funds, it’s considered income rather than an asset, so you should only lose Medicaid for that month. But if your account is still over the asset limit at the end of the month, you will be ineligible for Medicaid until the funds are spent down.
So, you could spend the money on things you need. Or you can shelter it by transferring the funds to a pooled disability trust or, if you were disabled before age 26, to an ABLE account.
