SSDI shouldn't be considered taxable income. I would find a good tax expert in Tennessee. It probably is your income they they are considering. Most state health care systems practically force you to be impoverished before they will cover you. In California you can't own real property or they can put a lien against it to repay Medical. You also can't own a vehicle worth more than a than a few thousand. It sounds like you are in the infamous "donut hole". I take it that he didn't have insurance at his job? If he did you might be able to COBRA it (that's not cheap either). After 2 years on SSDI he will automatically get Medicare - but it's the first 2 years you have to worry about.