I am in the process of applying for VA benefits for my Mom who will be moving to an ALF soon. I have received conflicting information and hope that someone can clarify.
Here's what I have learned: the current maximum income limit to qualify for veteran's benefits is $2,000. The current Medicaid max. income limit is $2022.
If, by receiving vet. benefits, your income exceeds the Medicaid limit, will Medicaid deny services? Is there a way to reduce income (not assets) legally?
I have read about QITs and Miller trusts that allow you to "siphon" off income to be placed in a trust in order to qualify. Whatever is left in the trust reverts to Medicaid after a person passes. Is this correct? Does anyone have experience with this type of trust?
There is also some issue with "capped" vs "non-capped" states. Whatever that means!!??
I do not want to proceed with the VA paperwork until I am sure that Mom will not have problems in the future.
I would appreciate any information! Thanks....Lilli
I heard about these trusts from an older post on this site. Is this the type you have?
I can see why a entire industry has popped up that just deals with VA/Medicaid issues. And, how important it is to do planning waaayyyy ahead of time.
Thanks again...Lilli
Found this comment online explaining cap states
Medicaid is a health care program for the medically needy, elderly and low-income individuals. Medicaid rules are very complex and can vary by state. One way of determining eligibility for the elderly is know as "income cap" eligibility.
Applicability
Individual states decide how they will administer their Medicaid program. States may use one of a number of options when determining eligibility. As of 2010, Alabama, Arkansas, Colorado, Delaware, Idaho, Missouri, Nevada, New Mexico, South Carolina, South Dakota and Wyoming were "income cap" states.
Significance
In an "income cap" state, the participant would otherwise be categorically eligible for Medicaid but for his or her income level. In these states, he or she may use an income level up to three times the benefit amount for a person living at home.
Income Trusts
In states that are "income cap" states, if an applicant's income is above the "cap," he or she may be able to create an income cap trust to reduce the amount of income counted toward eligibility. A trust essentially holds money for the benefit of a beneficiary for use at a later time but the money cannot be accessed at the present time.
Not knowing which state you live in, an attorney would be a good point to consult. The VA office that you are talking to about benefits may have someone on staff to help answer these questions or one of the firms that helps fill out paperwork, Helen