How Not to Lose Medicaid (Part 1)
Whenever I talk to families about how to get Medicaid approved, there are so many elements to a successful application and so many confusing requirements that the tendency is to relax a bit, thinking the job is done when we first get the application approved.
One example is with respect to the $2000 asset limit. One must spend down to less than $2000 in assets by the close of business on the last day of the month directly preceding the month we want Medicaid to start – known as the Medicaid pick up date. I constantly must remind families, however, that once you get to that number to achieve eligibility, you must keep under $2000 at the end of each and every month thereafter to maintain eligibility.
The same thing must be done in the case of a qualified income trust, which must be used when an applicant’s income exceeds the income cap or limit ($2742 per month in 2023). It is not enough to use it correctly the first month. If you forget to pass the right amount thru it in any one month, then you run the risk of losing Medicaid benefits in any month you are deficientThere are other ways to lose Medicaid even when you do follow the rules. That can happen because there is a change of circumstances such as when a family member dies. I’ll explain those scenarios next week.