Disabilty,Medicaid Clients

[Todd King]

The cash value is a countable asset no matter if the Medicaid is temporary or not. The Medicaid will certainly be temporary if they learn of the cash.

I have found when it comes to Medicaid, different states do it a little differently. Your statement could very well be true. Client states that Medicaid never asked her about it. As we all know, the client has to be telling the truth! LOL

 

[jdeasy]

I have found when it comes to Medicaid, different states do it a little differently. Your statement could very well be true. Client states that Medicaid never asked her about it. As we all know, the client has to be telling the truth! LOL

The law on it being a countable asset is not state specific. The amount allowed is state specific. It has to be $1500. Most states allow $2000. Some even more.

But I just met with a guy that's on Medicaid. We are replacing his OA and AmGen policies mainly so he can get his $2500 cash.

I told him beside getting the same coverage for a few dollars less per month it's good for him to get that money out before Medicaid gives him a problem. He said they have never once asked him about his life insurance and he's been on Medicaid for almost 10 years.

But I had to send a letter about the cash values for a Medicaid client today to that same social services office.

And had an argument yesterday with a lady at a funeral home because she was telling a client, and then told me, that all you had to do to be exempt from Medicaid was to make the funeral home the irrevocable beneficiary.

There's lots of stories out there. Very few of them are accurate.

 

[Thedude]

I have found when it comes to Medicaid, different states do it a little differently. Your statement could very well be true. Client states that Medicaid never asked her about it. As we all know, the client has to be telling the truth! LOL

pretty sure its all the same?

edit: yea what he said^^^

 

[dtownboy]

Let's not jump to any conclusions that might screw her up. The first thing she definitely needs to do is to get the policy back to a "paid to present" status.

To my understanding, she only went on Medicaid due to the cancer, so it may be a temporary thing. If it is temporary then she doesn't need to pull any money out of it. She wouldn't be able to pick up anything again for the next 2 years, so might want to leave it alone.

Now, if she is to remain on Medicaid after the cancer treatments, then she will certainly have to do something with that cash value.

Was my advice wrong? As far as all of my Medicaid interactions go it's what is necessary to do whether temporary or permanent. Getting the policy into good standing is definitely the best first step though. Then take out the policy loan to spend down the cash value but have a child put the loan I to an account in their name so the money is still available to help in paying back the loan IF they come off Medicaid

 

[Todd King]

Was my advice wrong? As far as all of my Medicaid interactions go it's what is necessary to do whether temporary or permanent. Getting the policy into good standing is definitely the best first step though. Then take out the policy loan to spend down the cash value but have a child put the loan I to an account in their name so the money is still available to help in paying back the loan IF they come off Medicaid

I wasn't saying it was wrong, I was just saying that we need would need to know how temporary or permenant being on Medicaid is going to be for her. She may not know herself, but if it is temporary you don't want to go and cash that policy in if she's going to be off of Medicaid in just a few months.

 

[noah]

Went on one today and when I showed her the card and went over the three reasons,she started telling me about being turned down for Medicaid. I did some fact finding on income,assets,began the discussion on CV and medicaid. She tells me she sent a copy of the policy to Social Services. She also said her mama left her a trailer,some land that has never been put in name,has not gone through probate. Her granddaughter lives there and has never paid her a dime. She did tell SS about the trailer and thought they turned her down because of the trailer.

After calling customer service at Farm Bureau,we learned the dividends had piled up on the $3800 CV listed in the policy to a whopping $5600.

No one had ever explained this to her.

She and the live in boyfriend even bought a med supp from an agent who came over and didn't discover the CV.

Always ask,and never assume.

 

[noah]

The law on it being a countable asset is not state specific. The amount allowed is state specific. It has to be $1500. Most states allow $2000. Some even more.

But I just met with a guy that's on Medicaid. We are replacing his OA and AmGen policies mainly so he can get his $2500 cash.

I told him beside getting the same coverage for a few dollars less per month it's good for him to get that money out before Medicaid gives him a problem. He said they have never once asked him about his life insurance and he's been on Medicaid for almost 10 years.

But I had to send a letter about the cash values for a Medicaid client today to that same social services office.

And had an argument yesterday with a lady at a funeral home because she was telling a client, and then told me, that all you had to do to be exempt from Medicaid was to make the funeral home the irrevocable beneficiary.

There's lots of stories out there. Very few of them are accurate.

What about someone on Medicaid being designated as the primary beneficiary. ?

Let's say the policy is 20k,the funeral costs 8k and the primary bene get's a check for the remaining 12k.

How does that effect their Medicaid ?

 

[jdeasy]

What about someone on Medicaid being designated as the primary beneficiary. ?

Let's say the policy is 20k,the funeral costs 8k and the primary bene get's a check for the remaining 12k.

How does that effect their Medicaid ?

That will be a countable asset for that person that gets the check. Unless they spend it, of course, before the next accounting month.

 

[SammyJ]

How does medicaid find out how much cash is in their policy if the client never mentions it?

 

[noah]

That will be a countable asset for that person that gets the check. Unless they spend it, of course, before the next accounting month.

Please explain "next accounting month".