There are many people who struggle with paying for long-term healthcare after they retire. This is because they neither have enough money to pay for expensive private insurance, nor do they fall below the maximum income and resource levels to qualify for Medicaid. However, does that really mean you make or have too much money to qualify for Medicaid, or is there some way you can still obtain Medicaid benefits?
What is Medicaid?
Medicaid is a government program, run jointly between the federal and state governments, which provides medical care to people who fall below a certain annual income and resource limit. In addition to providing access to regular medical care, such as check-ups and emergency room visits, it also provides access to long-term (nursing home) and community-based care (home care) for people with chronic medical needs. This is particularly important for retired people, who may not have the savings to pay for long-term healthcare as they get older.
How Can You Qualify For Medicaid Benefits With High Income?
Typically, in order to qualify for Medicaid benefits, you need to both fall below a certain income level and have less than a certain amount in total assets, depending on your age and disability status. If you make too much money, or have too much saved up in terms of your money or property, you will not be able to get access to those benefits. However, there is a way to maintain Medicaid benefits even if your income is above the legal limit: a pooled income trust.
What is a Pooled Income Trust?
A pooled income trust is a type of trust that allows you to place a portion of your income in the possession of a nonprofit organization, which manages that income on your behalf. So long as that income is in the trust’s possession, it does not count towards the maximum income limit for the purposes of qualifying for Medicaid. That money is still yours, to use to your benefit, but because it is excluded from that limit, you can keep your excess income and still qualify for Medicaid benefits.
What Should You Do?
Ultimately, the question of whether or not to place your excess income in a pooled income trust is a matter of your individual circumstances. That is why you should make sure to speak to a lawyer with experience handling estate planning and other estate law matters. They can help you determine what might work best for you, and ensure that you and your loved ones will be cared for.
If you are looking to plan your estate, or have any other needs related to probate, estate administration, or elder law, you should contact Leventhal Elias Law, PLLC. She can assist you with every aspect of New York estate and elder law, allowing you to focus on what really matters. For a consultation, contact her at her Staten Island office at 718-448-6655, or email her at EliasEsq@outlook.com.
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