Medicaid is a joint state and federally funded health insurance program for low-income individuals with a critical need for medical care. Those with non-exempt assets over the state-mandated amount are ineligible for assistance until their assets are depleted by healthcare costs. This can be devastating for a family that has diligently saved over the years, particularly if there is a spouse or dependent child involved. Fortunately, there are specific ways to reduce non-exempt assets or spend down assets. To learn more, look into funeral homes in Loveland, OH, where the funeral professionals who would assist you are highly trained, qualified, and carefully selected.
Who Is Eligible for Medicaid
According to their income and assets, seniors 65 years old and older, low-income adults with or without children, pregnant women, and disabled individuals can all qualify for Medicaid. The state determines how many assets and how much income a person is allowed to have. If you have more assets than are allowed, you will be required to spend them down or convert them to exempt assets before Medicaid coverage is approved. Depending on the assets transferred, this may need to be done up to five years before your Medicaid application, so planning, if at all possible, is extremely beneficial.
Non-exempt Assets
When you apply for assistance, Medicaid considers non-exempt assets as part of your accessible, countable assets. Non-exempt assets will be considered available for use in paying for your medical care. This includes money as well as various real and personal property that can be valued and converted into cash. Among these are (but are not limited to):
- Cash
- CDs, stocks, bonds, or mutual funds
- Trusts
- Jewelry, valuable art, and collections
- Life insurance cash surrender
- Savings and checking accounts
- Retirement accounts
- Non-revocable prepayment funeral contracts
- Property in addition to the main residence
- Multiple vehicles
Exempt Assets
Exempt assets are assets that are exempt from being included in your non-exempt or countable assets, at least for the time being. This is not an exhaustive list, but it does indicate the types of assets that are generally prohibited. The rules vary by state, but generally exempt assets include:
- Your primary residence (if you, your spouse, or a dependent child still live in the house, or if you intend to return)
- A life insurance policy with a cash value of up to $1,500
- One automobile for spouse or child
- Wedding and engagement rings
- Furniture, belongings, appliances, and household goods
- A revocable account for burial funds with a maximum value of $1,500 per spouse
- An irrevocable contract for burial space items (with no margin requirement) for you and your immediate family members, which includes your spouse, children (including adoptive and stepchildren), spouses, siblings and spouses, and parents
- A bigger irreversible contract for burial funds for you and your family member that includes funeral fees such as body transportation, embalming, cremation, flowers, clothing, funeral director and staff services, and so on
The funeral homes in Loveland, OH can assist you in sorting out your assets to maximize the exempt amount and qualify you for Medicaid coverage. Contact us today to learn more about your Medicaid countable and exempt assets.
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