To qualify for Medicaid, you need to meet the program’s income guidelines and enrollee eligibility. Therefore, you need to have a Social Security-approved disability and/or be 65 years of age. You cannot receive this governmental allowance if your income goes over the limits set for the benefits.
Don’t confuse Medicaid with Medicare, as Medicare benefits are not based on income but on age. Anyone who is 65 years or older is eligible for Medicare. Part A of the plan, which covers hospital and medical facility stays, is free while Part B is designed to pay approximately 80% of the costs for outpatient medical services.
To receive Medicaid, your income cannot go over a certain amount to receive the healthcare benefits. Some people, whose income is slightly over the amount, may spend down their additional income, to maintain coverage. However, you need to spend the money solely on medical costs.
Why Enrolling in a Medicaid Trust is Advantageous
Because spending down only covers medically related expenses, you’re better off to enroll in a Medicaid trust if your income is too high. This strategy works out well if you want to use the extra money to pay daily living expenses or the costs connected with home care. You can learn more about how pooled or Medicaid trust works by reviewing enrollment plans online.
To avoid spending down to receive Medicaid, pooled trusts enable you to use your Medicaid benefits by directing the pooled money, or your excess income, toward expenses that trusts can cover legally.
How You Can Spend the Excess in a Pooled Trust
The extra amount in a Medicaid trust may be spent for the following:
- A recipient’s personal needs
- Premiums for health insurance
- Required medical costs
- A maintenance allowance for a family member or spouse
- The costs paid to attorneys or accountants
- Basic necessities for daily living need
- Individual costs covering educational activities, entertainment or vocational pursuits
- Prepaid burial expenses
It’s important to note here that you cannot use the additional money to pay for another person’s healthcare premiums, another person’s share of the rent, or alimony and child support. You cannot use pooled funds to pay for someone else’s vacation nor pay an income tax that has not been established.
Generally, the idea here is to allow the Medicaid recipient to use the money for their own purposes and not allocate it toward the whims or needs of someone else.
Therefore, a pooled income trust can provide you with the means for receiving Medicaid, even if your income is too high. You can use the pooled money to cover more than just medical expenses. You can pay other costs as well. That way, you can receive Medicaid health services and pay other financially significant bills. Only a pooled income trust offers this type of latitude.
Become Medicaid Eligible – Enroll in a Trust Account
Have you been turned down for Medicaid because of your income? If so, you can enroll in a pooled trust to become Medicaid eligible. Find out more about the plan today. Doing so can financially protect you and improve your quality of life monetarily and personally.