Answered a question 7/21/2009 at 5:00 am
Cat offers some really good advice about providing documents to the State but she is slightly incorrect with some of her figures.
To qualify for Medicaid requires your MIL to meet three set
...Read MoreCat offers some really good advice about providing documents to the State but she is slightly incorrect with some of her figures.
To qualify for Medicaid requires your MIL to meet three sets of criteria: she must have a medical need, assets excluding a car and residence must be below $2000 and monthly income must be no more than $2022 (2009 limit).
Then it gets more complicated!
If any of your MIL's assets have been gifted or sold for less than fair market value since 2/7/06, her eligibility will be delayed based on a formula. If any transfers have been made, see an elder law attorney in your state for guidance.
Assuming no gifts have been made, the next question is whether the state is a so called "spend down" state or not. A "spend down state" determines income eligibility by first subtracting eligible medical expenses (like the cost of nursing home care) from the total income. If the balance is less than $2,022 your mother in law would be income eligible.
With the cost of NH care so high, if you're in a "spend down" State, Cat is correct. All but a very small portion of her income will go to the NH to cover her costs of care. Some States only allow a $35 personal needs allowance as Cat mentions. Others provide a bit more. Texas is $60.
If you're MIL lives in a "spend down" state, income qualification should be easy. If she lives in one of the twenty-one states that don't use the income spend down method, you may need a "Qualifying Income Trust" to get her financially eligible. Unless your State provides a prototype, you'll need to hire an attorney.
The business office managers should know if your MIL's State Medicaid program requires a "qualified income trust". For others reading this post, a word of caution: social workers and business office managers are not necessarily experts on your State's Medicaid rules. Be very careful relying on any advice they may offer. If you have any assets to speak of, have made any gifts or transfers of accounts or property or have income over the limit, spend a few bucks with an experienced elder law attorney. The peace of mind will be well worth the money