Monies Received During the Month

Prior posts have indicated that Medicaid eligibility is determined on the first day of the month. Therefore, resources received during the month do not result in ineligibility unless not properly disposed of during the month. This issue has been addressed in Post 31 (the problem of recurrent disqualification). It is important to constantly monitor a recipient’s account during the month since the $2,000 (or $4,000) resource requirement for an applicant can be lost. Any use of the money (except for a gift) would be an appropriate spenddown. Clothes or prepaid funeral expenses would be typical for a single person. A married individual with a home could use the funds for reasonable expenses for the home.

Post 13 indicates that the community spouse resource allowance is not limited after eligibility of the applicant. Therefore, any monies received by the community spouse after that date are irrelevant. However, if the community spouse does receive funds prior to eligibility, such funds must be deal with in the same manner as discussed for the applicant. With respect to the community spouse, Post 50 indicates that the community spouse’s resource allowance changes annually and this should be considered, if applicable.

Post 3 indicates that under certain circumstances prior to eligibility, it would be desirable to increase the community spouse resource allowance (but not beyond the limit) by transferring life insurance of the applicant.

Another related problem discussed in Post 33 deals with the problem of the working spouse. In this situation, the receipt of monies by the community spouse on an ongoing basis precludes Medicaid eligibility. See Post 33 for the solution. It is important that the community spouse not resume working until eligibility of the applicant is granted, unless there is the possibility of reducing the receipt of funds below the community spouse resource allowance. Such hypothetical might be the existence of a substantial debt on the home such as a mortgage or reverse mortgage.

Finally, with respect to monies received during the month and the amount of the resource allowance, it is my practice to have the applicant qualify with lesser funds than the resource allowance to cover the possibility of a miscalculation resulting in ineligibility.


Disclaimer: This article does not constitute legal advice and each person may have unique facts for which legal consultation may be necessary.
© June 2009, Post 96