The Problem of Recurrent Disqualification

The Problem of Recurrent Disqualification

A. A Medicaid recipient may be entitled to monies on a recurring basis, which will raise continuing disqualification problems.

1. For example, an individual may be entitled to several payments due to an asbestos class action recovery.

2. Such funds received during a given month not expended by the “first moment of the first day” of the subsequent month will result in disqualification if the resource requirement is exceeded.

B. Planning in advance may avoid disqualification.

1. Possible uses of such funds received on a recurrent basis are funeral expenses, clothing and outstanding medical bills.

2. If the Medicaid recipient has a caretaker agreement (see Post 17), which allows the recipient to reimburse a child or relative for prior services rendered by such individual, payments made under the agreement could solve the problem. Also, exempt transfers such as to a “disabled” child will ameliorate the problem.

3. All bills and expenses should be paid immediately. If receipt of the money causes the Medicaid recipient to exceed the resource requirement on the first of the next month, private payment must be made even if the monies available on the first of the month exceed the resource requirement by even a minimal amount.

4. Prepaid burial costs can be increased.

Disclaimer: This article does not constitute legal advice and each person may have unique facts for which legal consultation may be necessary.


© May 2009, Post #31