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Both of my inlaws are in a skilled nursing facility. They both are on Medicaid. My father in law has a life insurance policy that the children are beneficiaries. It is an allowed insurance policy per Medicaid. The policy pays dividends each year in form of cash, which counts towards his limit of cash on hand. Next year after dividends are paid he will be over the limit. We still have his car to bring them to doctor appointments. Can we use some of his excess cash to pay his car insurance premiums? Is this an allowable expense per Medicaid?

I would say no. Even though you are allowed a car and house, you are not allowed to use their money for upkeep. Since Medicaid is aware of the insurance policy, where they told it paid dividends? All I can say is it needs to be spent on Dad. New clothes, shoes, socks. snacks, favorite candy, books.

Remember too, that their personal needs accts count against the amount Medicaid allows you to have.

Call the insurance company and ask if the dividend can be rolled over.
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