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My dad is getting better and qualifies for Medicaid based on his unemployment, lack of assets, and disability. We are told that is he keeps getting better, he could loose Medicaid because he is "too well". If no longer on Medicaid, could he go back to receiving distributions from a trust that his mother set up? Would the government want back payment for his hospital and nursing home care?

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suzmarie, in many states, going on disability automatically qualifies one for Medicaid. In other states you have to apply separately but disability is generaly a qualifying condition.

I've been told that in our state it would be highly unusual for someone 57 who is on disability to be removed from disability status. I suppose that can vary by state, and that even here a miraculous full recovery would change things.

Igloo is right ... pgharp's dad needs to consult a lawyer.
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Igloos572's suggestion is great. I believe Medicaid is based on assets, not if one has a disability.
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You need to see an attorney. If the trust was properly done as a "special needs trust" - set up for him because of his disability - then it likely doesn't count as an asset but really only an attorney in your state that understands the nuances of your states law can let you know that.
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