Means Test
Updated: 18 November 2024
What Does Means Test Mean?
A means test evaluates an individual’s financial situation to determine their eligibility for government financial assistance.
Such tests are commonly used in government-sponsored programs like Medicare to assess whether a person qualifies for benefits.
Insuranceopedia Explains Means Test
The primary purpose of a means test is to evaluate whether an individual genuinely requires the assistance they are seeking. Typically, eligibility for government assistance is reserved for those in financially distressed situations. As a result, individuals with substantial wealth or high incomes, even if they lack accumulated wealth, generally do not qualify for certain benefits.
