For an individual to be eligible for Medicaid services at home, he or she must be over 65 and disabled. In addition, the applicant must meet certain income and asset criteria in order to qualify, because Medicaid eligibility requires a means based test. As of 2017, an applicant is allowed to have $845.00 in income. It is possible that Medicaid may take any income in excess of this amount. For many individuals, turning over these excess funds to Medicaid is not a viable option because it would leave them without the means to pay certain expenses.
In order to prevent Medicaid from taking excess income as reimbursement, New York State Medicaid Rules permit individuals to deposit his or her excess income into a trust fund known as a “pooled income trust.” A pooled income trust is established by a not-for-profit agency in order to meet an individual’s excess income so that he or she may pay their monthly expenses.
The process works by an applicant sending the agency a monthly check for the amount that exceeds the allowable limit of $845.00. The applicant will also send his or her household bills to the trust fund. The trust will then pay the individual’s household bills and expenses as well as deduct a minimal monthly fee for servicing the account. This method allows a Medicaid applicant to pay his or her bills while reducing their excess income amount.
While turning over excess income to Medicaid may leave many individuals impoverished, a pooled income trust is a viable alternative. It is imperative to speak with an experienced professional to explore this option so that you and your family are provided for.
For Long Island residents who are elderly or have disabilities, access to New York Medicaid benefits is of the utmost importance. Special needs trusts and pooled income trusts can help New York residents meet eligibility requirements for Medicaid and SSI benefits. The Long Island, New York special income and pooled income trust professionals at P&P Medicaid Consulting, Inc. are available to assist the residents of Nassau County, Suffolk County, and Queens in preparing applications for Medicaid eligibility while taking advantage of programs and planning options that will protect assets. For more information or to schedule a consultation, contact our Long Island Medicaid eligibility consultants at (516) 541-4770.