Let's say a person in Texas has a $5K FV whole life policy with a CSV of $3000 and other resources of $300. That person was granted Medicaid eligibility because of a $1,500 life insurance exclusion resulting in resources of $1500 + $300 or $1800, under the $2000 resource limit. Was that an error on the part of the Medicaid screener (which could be caught in the upcoming annual review) and if so what are the consequences? Could that policy somehow be recharacterized into $1500 worth of some sort of burial policy plus a whole life policy with resultant reduced CSV? I am guessing that reduced CSV would be around $1500, resulting in essentially the same situation.

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You should be fine in my experience. The initial caseworker review is pretty exacting. So if it passed, she’s good. It’s a type of phantom math problem. Not the usual situation. The question to me is do you have to really spend their PNA in full so that they never ever have a month with the bank statement going over $200? I’d try to get an answer to that in writing as your going to have to buy things otherwise.

If so, in. my crystal ball I see many pairs of those horrid SAS shoes the old ladies love wearing being bought. Easy $75/$100. If it’s stuff more expensive, like new eyeglasses, plan on buying them right at end of mo, so 1/2 out of that month and other half in next month.

are you the one with VA $90 & TX PNA $60? If so $150 is a good bit to spend. I’d suggest you Get a debit card so it can be instantaneous. You don’t want optician holding check a couple of days and it screws up her bank statement over $.

you probably want it so when caseworker looks at the bigger picture & everything added up, the total is always under 2k. Remember if she has personal needs trust account at NH that $ adds in every mo. as well. If her NH does field trips, those can be a $50+ event fee between admission, van rental, meal. Ask the NH activity’s Director if they do them. Often these aren’t widely known as most cannot physically go or can’t afford. If your anywhere within driving distance to SA, a lot of NH do Morgan’s Wonderland field trips. Amazing place.
Helpful Answer (2)
Reply to igloo572
ptbtexas Aug 29, 2018
Thanks for a very helpful answer igloo. I was the one you helped before, i.e. the $60+$90=$150 situation. The $300 I mentioned is about what's in her bank account. If I keep it at about that level it keeps the account about $200 below the $2K limit. Good info on the debit card! She's asked me for a phone and that would be about $30/mo and the life insurance is about $55 so the extra $90 shouldn't be an issue but good idea on SAS, glasses, etc. If I finish the application for the VA allowance I'll have to ask them to not make it retroactive as that would be a problem. I don't remember anything about setting up a trust at the NH but maybe that's where her Applied Income autopay deposits end up. I am about 2 hours from SA (Georgetown) but that would be too much of a trip for her these days. Thanks again igloo.