Florida residents may be aware that Medicaid is a federal health care program that offers wide-ranging options for low-income individuals of any age. There are different programs, such as institutional or nursing home Medicaid, home based Medicaid, and regular Medicaid for the aged and disabled.
Regardless of which plan one plans to choose, Medicaid planning can go a long way in ensure one is eligible for the plan needed. This gives those who are over the age of 65 and financially ineligible for Medicaid to find other ways to qualify.
Qualified income trust
Excess income can be put into a trust by those who are seeking long-term care in a nursing home or in a community setting. Money may be deposited monthly into a QIT to bring one’s income down to the income limit prescribed by Medicaid.
The legal control of the trust will be granted to a trustee and the income can only be used for specific purposes, such as medical bills and personal needs. A qualified income trust is irrevocable. The remaining money must be given to the state of Florida upon the death of the Medicaid recipient.
Medically needy pathway
Those who are seeking regular Medicaid and have a high income but have equally high medical bills can still qualify for Medicaid. Their excess income is spent down to cover one’s bills including healthcare insurance costs. After the spend down to the Medicaid eligibility limit, Medicaid kicks in for the rest of the month.
When engaging in Medicaid planning, it is important to understand how one’s income and assets play a role in eligibility. Consulting an experienced attorney may be one way to ensure the complicated process can go smoothly.
