Low income health programs Eligibility and Proceeds of Insurance

If you are still in a Nursing Home and included in Medicaid (i. e., the Medicaid program is needed paying part or your entire bills), what happens if you see a lump sum cash payment as they proceeds of a life insurance policy? Unfortunately, since Medicaid only will help have no more rather than $2, 000 in methods, this would cause you immediately to become disqualified this Medicaid. By law, you would have to report the receipt for their money to the make a claim Medicaid agency, and it would let both you and the Nursing Home know you happen no longer eligible for Medicaid til you have "spent down" that money for hard times.

At that point, you could (i) the actual money on your Nursing Home bills before you are once again down it is in the $2, 000 limit plus re-apply for Medicaid, or (ii) engage in a much asset protection planning to preserve some if not all of that lump a variety payment, before re-applying for Medicaid.

For example, it's likely you'll use the money to create a car. As long as the car is during the transportation of you or simply to another household member, its excluded, no matter the exact level it costs (within reason). Another use of the proceeds would be to obtain pre-paid funeral/burial plan. Again, there is no limit with regards to cost, so long currently all actually to be used for your funeral and memorial service.

If there is a variety of money from the insurance coverage, then other more complicated planning there are particular employed, some of which are discussed i reckon other articles suitable here. For instance, a gift coupled with purchase of a "Medicaid annuity" can generally protect well over one-half of the riches.

Finally, note that but if the insurance proceeds are paid documented in at-home spouse of the actual Nursing Home resident, then such money does not count against the Medicaid eligibility for their Nursing Home spouse. Beginning with the start of the month after and the wonderful Nursing Home spouse is initially deemed qualified for Medicaid, the assets through the at-home spouse are as opposed to available to the Nursing Home love affair.

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