Asset Protection/
Medicaid Planning
The decision to enter a nursing home is highly emotional and requires much consideration. We believe that money matters should not further complicate the stress of your decision. Long-term nursing home care costs are expensive (averaging $7,496.00 per month in 2024); however, with the right estate plan, Medicaid can help cover these costs.
Medicaid
Medicaid is provided in Indiana under the Family and Social Services Administration Division of Family Resources. It is a much-needed source of health care coverage for the elderly, blind and disabled.
Waiver Services
In addition to the medical services covered under Medicaid, Medicaid also offers additional non-medical home and community-based services under programs known as "waiver services." Waivers are designed as an alternative to institutionalization. Thus, to qualify for waiver services, a person must first meet the level of care to receive services in an institution (hospital, nursing home, or intermediate care facility for persons with a developmental disability) but choose to receive services in the community.
Eligibility
Resource Limits
To qualify for benefits, the law requires an applicant's resources and income to be below certain limits. An applicant's total available assets must be less than $2,000.00 for a single person. For a married couple where both individuals are seeking benefits, their total resources must be less than $3,000.00. Resources are valued as of the first day of each month and, if the Applicant is over this threshold, they are ineligible to receive benefits for that entire calendar month. Assets such as real estate, a vehicle, prepaid funerals, and the like are considered exempt and are not counted in the resource calculation under certain circumstances.
Exceptions to the number of resources an Applicant may have also existed when married, in a nursing home, hospital, or receiving waiver services, and their spouse is living in the community (not in a nursing home or hospital). These exceptions are called the "spousal impoverishment" rules. They are designed to protect a spouse living at home from spending their life savings before their spouse is eligible to receive Medicaid benefits.
Eligibility
Income Limits
Income is broken down into two (2) categories: earned income and unearned income. Earned income is payment received in wages, salaries, and commissions from an employer or self-employment. In-kind earnings such as goods and services received in place of wages, along with profits from the sale of farm crops, livestock, or poultry, are all also considered income. Unearned income is income from which there is no current work performance or services such as retirement income, disability payments, and unemployment/worker's compensation benefits.
To be eligible for Medicaid benefits for an Applicant residing at a nursing home or seeking waiver services, they must have a gross monthly income less than the Special Income Level ("SIL") of $2,829.00 in 2024. Those applicants with gross monthly payments above the Special Income Level will not be eligible for benefits without establishing a Qualified Income Trust or "Miller" Trust.
Qualified Income Trust
a/k/a "Miller" Trust.
An applicant with a gross monthly income above the Special Income Level must establish a Qualified Income Trust and set up a bank account in the name of the trust. To be eligible for Medicaid benefits in any given month, the Applicant must deposit the difference in their gross monthly income and the Special Income Level into the bank account owned by the trust.
There are much complex planning and legal challenges presented in Medicaid planning. Rest assured, with 45 years of experience in handling these challenges, we will be here to help! Please schedule a consultation today, so we can go through your options, answer any questions you have, create an estate and Medicaid plan to fit your needs, and handle the application process from start to finish.