Low income health programs Eligibility and Proceeds of Insurance policies

If you usually are in a Nursing Home and help Medicaid (i. e., the Medicaid program is paying part or your own bills), what happens if you recruit a lump sum cash payment whilst the proceeds of a life insurance policy? Unfortunately, since Medicaid only enable you to have no more than in the past $2, 000 in financial, this would cause you instantly to become disqualified between Medicaid. By law, you would have to report the receipt on your own money to the step Medicaid agency, and it would let you and the Nursing Home know it is possible to no longer eligible for Medicaid in anticipation of having "spent down" that the retail price.

At that point, you could (i) your time money on your Nursing Home bills before you are once again down within $2, 000 limit in order to re-apply for Medicaid, or (ii) engage various asset protection planning to preserve some if not all of that lump sum payment, before re-applying regarding any Medicaid.

For example, you may want to use the money to create a car. As long as the car is into the transportation of you and / or another household member, it's going to be excluded, no matter how much you need it costs (within reason). Another technique proceeds would be for a pre-paid funeral/burial plan. Often, there is no limit to cost, so long currently all actually to be used for your funeral and funeral obituary.

If there is many money from the coverage, then other more complicated planning therefore employed, some of which are discussed my personal other articles on this internet site. For instance, a gift or purchase of a "Medicaid annuity" can generally protect or even one-half of the funds.

Finally, note that your own home insurance proceeds are paid sth at-home spouse of the required Nursing Home resident, then such money refuses to count against the Medicaid eligibility on your own Nursing Home spouse. Beginning with the beginning of the month after and your Nursing Home spouse is initially deemed qualified for Medicaid, the assets individuals at-home spouse are forgotten about available to the Nursing Home wife.

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