Getting to Know the Basics of Medicaid

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65 and Older: Applying For Medicaid In Ohio

medicaid community spouse estate planning long-term health carMedicaid is a federal and state program that provides long-term health care for those age 65 and older who meet certain income and asset requirements. Medicare is a federal health insurance program available for anyone age 65 or older regardless of income or asset level but does not cover long term care. Thus, if a senior needs long term care, they pay for it from their own resources until they reach a level qualifying them for Medicaid eligibility, at which time Medicaid takes over and pays the long-term health care  facility’s bill going forward. The basic rules are as follows. All numbers are Ohio Medicaid figures for 2022.

An individual applying for Medicaid must satisfy an income eligibility test. The applicant’s eligibility must not exceed $2,523 per month. If the applicant is married, the applicant’s spouse’s income is not counted. Also, the non-applicant spouse may be entitled to a minimum monthly maintenance needs allowance (MMMNA). If the applicant would otherwise qualify for Medicaid other than failing the income test, they can set up a qualified income trust (QIT), sometimes known as a “miller’s trust”, whereby the excess income is deposited into … Read More... “Getting to Know the Basics of Medicaid”

MEDICAID TRUSTS-WHAT ARE THEY?

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A Medicaid Trust Protects Assets if you Have to Enter a Long Term Facility for an Extended Period of Time

medicaid trust capital gains taxThere are a number of different trusts available to address different situations. Trusts can be testamentary trusts created out of a will or separate stand-alone trusts known as intervivos trusts or commonly called revocable living trusts. Some trusts are created to avoid the probate process. Others are created to provide estate tax savings. Still others are created to avoid special need beneficiaries from losing need based assistance benefits such as Medicaid or SSI. Another type of trust is commonly known as a Medicaid Trust to protect assets in case the maker has to permanently enter a long term care facility in the future. A short overview of such a trust follows.

AN OVERVIEW OF MEDICAID TRUSTS:

Medicaid is a federal need based program to provide financial long term care benefits to those who have exhausted all of their assets. Medicaid also currently has a “look back period” of five (5) years, which basically means that if you give anything away less than five years before you apply for Medicaid, your application will be denied and a period of ineligibility will … Read More... “MEDICAID TRUSTS-WHAT ARE THEY?”

Disabled Individuals May Save and Invest Without Losing Need-Based Benefits

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Social Security Disability Benefits

New Investment Program, “STABLE” Available To Disabled Ohioans Who Are On Social Security Disability Benefits

social security stable disability benefitsBack in 2016, then Ohio Treasurer Josh Mandel announced a new program called STABLE, which created a new type of investment account that had certain tax advantages, and was available to disabled Ohioans and their families. Ohio was the first state to create such a program, and it has since been expanded to residents of all states.

A person is considered eligible for a STABLE account if they are entitled to receive Supplemental Security Income (SSI) because of their disability, Social Security Disability Insurance (SSDI) because of their disability, have a condition listed on the Social Security Administration’s List (https://www.ssa.gov/compassionateallowances/conditions.htm), or be able to ‘self certify’ their disability and diagnosis via a certain set of procedures including a signed diagnosis from a licensed physician in most cases. Such an account allows individuals with disabilities to save and invest without losing needs-based benefits.

Participants in the program can choose from five different investment options.  Anyone, including family and friends, can contribute to an account, and a maximum yearly contribution of $15,000 a year can be made … Read More... “Disabled Individuals May Save and Invest Without Losing Need-Based Benefits”

Special Needs Trusts in Ohio in a Nutshell

special needs trusts medicaid ohioShould an individual with special needs receive a large sum of money, it is often wise to have the individual or his/her fiduciary establish a special needs trust in order to not jeopardize assistance already being received such as Medicaid or SSI.  Should a parent or grandparent wish to provide funds to a special needs individual and not jeopardize assistance being received, a special needs trust may also be a good idea.  However, before embarking on such an endeavor, it is critical to understand the different types of special needs trusts and their requirements or else risk losing the benefits already being received.

Set Up Special Needs Trusts To Protect Existing SSI Or Medicaid Benefits

The most common special needs trust created by and with assets of a third party is known as a discretionary “supplemental needs” trust.  With such a trust, there is no requirement that funds be turned over to the state upon the death of the beneficiary.  However, proper drafting is critical.  It is to be used for things not covered by Medicaid or SSI.  It must clearly state that it cannot be used for medical care, comfort, maintenance, health, welfare or general well-being.  It should … Read More... “Special Needs Trusts in Ohio in a Nutshell”

Medicaid: Qualified Income Trust Needed For Eligibility

ALERT: Significant Changes in Ohio’s Medicaid Income Rules Have Arrived! Qualified Income Trust Needed For Higher Income Families To Be Eligible

medicaid qualified income trust ohioFor those receiving long-term care services, Ohio’s Medicaid program has always had a monthly income limit.  In 2016, that limit is $2,199 per month.  However, until now, Ohio was a spenddown state, which meant that as long as the individual spent down each month on monthly expenses below the income threshold, the individual would be eligible to receive Medicaid services.  Effective July 1, 2016, no one will be able to spend down to meet the monthly income threshold, but will need to deposit any excess income into a Qualified Income Trust (QIT) to become eligible for Medicaid coverage.

A QIT will divert some of the applicant’s monthly income into an irrevocable trust managed by a trustee (usually a family member).  The trust can only be funded with the individual’s pension, social security or other income.  No other resources may be added to the trust.  The income must first be paid to the individual and then transferred into the trust.  The money in the trust can only be used for incurred medical expenses, monthly personal or maintenance needs allowance, … Read More... “Medicaid: Qualified Income Trust Needed For Eligibility”