Mom is getting a retroactive lump sum from SSI survivor benefits of $16,000. She is currently in an assisted living facility on a Medicaid waiver. What will the consequences be?
My stepdad died in May of 2022. My mom is on SSI and currently living in an assisted living facility on a Medicaid waiver. She found out she qualified for survivor's benefits when talking to social security about another issue. She did the necessary paperwork and was approved. Her income is going from $943/month to $1,500. This is great because before she would only be left with 50 dollars after paying the facility. However, she is also getting a retroactive lump sum of $16,000 that she wasn't expecting. She says she'll be ineligible for Medicaid because of this and is panicking because she is supposed to have a surgery next month to deal with a large abdominal hernia. She has no idea what to do with this money. Will she have to use it to pay out of pocket for the surgery? She is assuming the facility she is in will end up with all of it otherwise and then she will once again qualify for Medicaid. Of course, she would like to keep it if possible and she knows it's unlikely but neither of us understand how any of this works. Does anyone know if she would have to spend it down somehow or could it be put it some kind of trust? She has no other assets and very little furniture in her room. My wife and I were both laid off a couple of weeks ago so haven't been able to help her much. Does anyone have any advice or could possibly point me in the right direction? Thanks.
ssa.gov is the website you can check out. The way this works should be there
Second mom won't get the money all at once. By law, It will be in 3 installments 6 months apart based on 3 times what the maximum monthly SSI is. In this case it is 943 x3 or $2829. Her first 2 payments will be this. The last payment is what is left over, which would be $16,000-$5658=$10342
She has 6 months to spend these overpays before they count against her SSI. She can use this money anyway she sees fit.
If she wants and SS agrees, she can get more of this back pay sooner, but only in certain circumstances. Her being in this facility may fit, but I'm not 100% sure of this.
If her husband was a Vet enlisted in time of war, she maybe entitled to the $90 that Aids and Attendance gives for personal needs. She can't receive A&A because she has Medicaid.