The News Herald (Willoughby, OH)
LEGAL FORUM PROBATE
Q :
My mother is suffering from dementia, and now requires the services of a nursing home. Her monthly income is too high to qualify for Medicaid. Are there any options available to her?
A:
In order to qualify for Medicaid benefits, individuals must meet strict income and resource (assets) eligibility requirements. It is important to note that Ohio instituted changes to its income and resource eligibility limits on August 1, 2016. Previously, Ohio allowed an individual to reduce, or “spend down,” his/her income to Medicaid eligibility levels by deducting medical expenses. As of August 1st, there is only a gross income eligibility test, which is currently set at $2,205 per month, and a Medicaid recipient may now have $2,000 in resources, up from $1,500 previously.
There is an option available for individuals, like your mother, who receive long-term care services but have income levels in excess of $2,205 per month in 2017. To qualify for Medicaid coverage, they can create a Qualified Income Trust (QIT), also known as a Miller Trust, into which they can deposit their excess income. To be valid in the State of Ohio, a QIT must:
• Include the Medicaid recipient’s income only. It cannot contain a spouse’s income, income from other relatives or other assets.
• Be irrevocable. Once the trust is established, it cannot be changed or canceled.
• The State of Ohio is named as the beneficiary. The State of Ohio is required to recover Medicaid payments made on an individual’s behalf. According to the Ohio Department of Medicaid, money in a QIT can be used to pay for incurred medical expenses, monthly personal or maintenance needs, allowance (applies to assisted living/ nursing home residents), bank fees associated with the maintenance of the QIT, and patient liability, if applicable.
A QIT is irrevocable. This means it remains in effect until your mother dies. Because the State of Ohio is the primary beneficiary of the QIT, any money left in the QIT when she dies is paid to the state, up to the amount Medicaid paid for her care.
If you have a Financial Power of Attorney for your mother, please make sure the necessary language is included in the document which would allow you to create a QIT on her behalf. If it doesn’t, she should update the document before the disease renders her incompetent.
Please contact the DiCello Law Firm to further discuss your mother’s situation.