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Dear
Inquirer,
Medicaid is a state-run program
funded by the federal government. It helps people of modest financial means
pay for long-term skilled care. This care may take place in a nursing home,
within one's own home or in an assisted-living home setting. If your finances
are limited and you are in need of long term medical care, Medicaid may be
of great help to you.
Medicaid is a "needs
based" program. This means that you are entitled to Medicaid only if
your finances are limited. (Medicaid also requires that you attain a
certain level of skilled medical need before being eligible. Only the
financial requirements for nursing home placement are discussed here.)
There is a two-pronged test in determining financial eligibility: 1. How
much you make in monthly income, and 2. How much you have in assets,
or resources.
1.
Income.
Alaska is an "income cap" state. To be eligible for
Medicaid in Alaska
you cannot earn more than $1656 a month. If your monthly income exceeds
this amount by even $1.00 you are not eligible for the Medicaid program.
So, for example, if a person made $1000 in Social Security each month and
$657 or more in retirement income, that person is over the Medicaid income
cap limit by $1.00 and is not eligible for Medicaid!
To avoid hardship, the federal government
has permitted the use of an instrument called a Medicaid trust (sometimes
called a "Miller trust") which is authorized under 42 USC
1396p(d)(4). This is a document that allows you to have your monthly income
placed in a separate bank account under the name of the trust, and under
the control of a separate trustee. The trustee is usually a family member
or trusted friend who handles the person's income each month. If you live
in a nursing home, all of your monthly income will go to that nursing home,
except for $75 spending money for you. (This $75 is called a Personal
Needs Allowance.) If you are living in the nursing home and you have a
spouse at home, Medicaid will allow your spouse an allowance of as much as
$2739 of your income to be used as stay-at-home support. This allowance is
reduced by the amount that your spouse earns on his or her own. For
example, if he or she received $1000 per month for his or her own social
security, the monthly spousal allowance would be $1739 ($2739 minus $1000).
2.
Resources. (Assets)
To be eligible for Medicaid, you
cannot have more than $2000 in assets or resources. However there are
certain important exemptions. The spouse, who is not applying for Medicaid,
is entitled to a resource allowance in the amount of $109,560. So, if you
and your spouse had a joint bank account in the amount of, let's say $108,560,
your spouse could move $107,560 from that account to a bank account solely
in his or her own name. You would then be under the $2000 resource limit,
since the bank account under your name would contain only $1000.
The value of your home up to
$500,000 is not considered a resource, and is exempt. Even if you do not
have a spouse at home you can claim this exemption. You always have a right
to file a form stating your intent to return home someday.
An automobile is exempt for the
Beneficiary or a member of the Beneficiary’s household to
provide necessary transportation for the Beneficiary.
There are other exemptions that
are not discussed in this general overview of Medicaid eligibility in the
state of Alaska.
The Law Office of Ernest M.
Schlereth, LLC
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