So many people think they cannot qualify for Medicaid covered Long Term Home Care because their income is too high. It is true, that Medicaid does have limits on Monthly Income but there is a way to qualify for Medicaid Benefits despite having what is commonly referred to as “excess income”.
The way to qualify for Medicaid without losing your excess income is through something called a Pooled Income Trust. A Pooled Income trust is a type of special needs trust that is utilized for a person to remain eligible to receive Medicaid services without forfeiting their excess income to Medicaid.
In 2017 the Medicaid limit is $825 for individuals and $1209 for a couple. Anything over this amount is “excess income”. If you deposit your excess income into the pooled trust each month, you can qualify for Medicaid home care services and use the money in the trust to pay monthly living expenses.
For example:
Susan has $2500 in Monthly income via SS and her pension. Medicaid says she can keep only $825. Therefore $1675 is her “excess income” and will go into the pooled trust monthly. This can be done via Electronic Funds Transfer (EFT) so Susan and her family do not have to worry about mailing monthly checks.
Now the Pooled trust has her $1675. The trust charge monthly fees and they are on a sliding scale based on the amount of the monthly deposit. In this case, the fee is $100/month. Now Susan has $1575 monthly to use for her bills.
The Trust can use this money to pay her Rent, Mortgage, Property taxes, Utilities, Credit Card, etc. The distributions from the trust must be for Susan’s benefit only. Therefore, her name must be on all bills submitted and the charges must be for her personal benefit.
Now Susan has the use of all of her income (except the monthly fee from the trust) to manage her living expenses and her long term care needs are paid via Medicaid.
Filing for a pooled trust can be complicated. The Trust Company you chose is critical in this process. You need a reliable company that pays bills on time and is responsive to your need ie good Customer Service! You also need help in completing the application and insuring the proper paperwork is filed with the local Department of Social Services. Not only do you need the Pooled Trust application completed property but there is also a “disability” requirement associated with enrolling in the trust. There are several forms and Medical records which must be filed with the Local Department of Social Services. It is for this reason that you should consider having a professional to assist you through this process.
