The Medicaid program was established in 1965 in the US to provide funding to low-income individuals in need of health-related services. This funding is sourced from federal and state dollars; hence, it has regulations from both the federal and the state governments on how the Medicaid program should run. Applying for the community Medicaid trust is a challenging process, and you may need help from a professional. This article will help you understand what community Medical trust is and how you can qualify for the program.
Learn more about medicaid trusts in your area.
What is a Medicaid trust?
Community Medicaid offers financial cover for medically related services, allowing individuals to remain in their communities. People with proof of residency are qualified for community Medicaid cover. The Medicaid trust involves long-term cover for medical services such as private duty nursing, home health care, assisted living programs, monthly income, and expense management services.
Did you know you may qualify for a community medical trust? Medicaid will determine your eligibility after providing the following documents.
Personal documentation
For Medicaid to determine your age, you must provide your birth certificate or driver’s license. The Medicaid trust only covers individuals above the age of 64 or the physically challenged. If you are disabled, you will need medical records to prove your disability.
Financial documents
Financial eligibility is determined by the applicant’s paperwork about their income and assets. There is a limit considered, and it varies if you have a spouse who is also applying for the community Medicaid trust.
All income the applicant receives, including alimony, pension payments, Social Security income, annuity payments, IRA payments, employment wages, and any other, are counted towards the Community Medicaid trust limit. It is critical to note that individuals’ income alone cannot disqualify them from receiving Medicaid.
In terms of assets, all are taken into account. They include stocks, bonds, real property, bank accounts, and investments. However, community Medicaid trust exempts the following assets:
- IRAs in payout status
- Specific funeral arrangements made before an application for Medicaid
- A primary residence with a low equity value
The eligibility process for chronic and Nursing Home Medicaid involves the “look back” period. Medicaid looks back at all assets transferred prior to the application date.Â
If you have transfers or gifts made for a market price of less than the fair value, you may be considered ineligible. With no lookback period, an applicant could transfer their assets to another person or a trust to ensure they meet the asset and income requirements for the community Medicaid trust. Once the application was successful, an applicant would start benefiting from Medicaid the month after making their asset transfers. This is no longer possible as a look back period was imposed on Community Medicaid trust.
Certain transfers are, however, still exempt for the community Medicaid trust. They include transfers to a spouse, a trust for a blind or disabled child under 65 years, and more.
Final Thoughts
Now that you know how you may qualify for the community Medicaid trust program, all that’s left is for you to choose when to apply. Remember to prepare thoroughly to improve your chances for success.
