In New York City and other NYS Counties, Medicaid imposes limits as to how much income and resources a disabled person is allowed to receive and retain, and still be eligible for Medicaid Medical assistance. In 2021, the maximum monthly income allowed is $884 plus $20 miscellaneous. Additionally, if the applicant carries a supplemental health insurance, the monthly premiums are also allowed in addition to the $884. The maximum resources allowed is $15,900. Suppose the applicant is over resourced? The applicant has several choices to protect the assets and become Medicaid eligible: The first is to transfer the surplus resources to an irrevocable trust, or to a family member or to a pooled-income trust. By transferring the excess or surplus resources one month, the applicant becomes eligible the following month.
Suppose the applicant receives more than the $884 per month allowed by Medicaid standards? Here too the applicant has a few choices: The first is to surrender the excess or surplus income to Medicaid each month, and in doing so the applicant’s eligibility remains for all Community Medicaid services; however, not everyone can afford to surrender their monthly excess or surplus income. The individuals who are unable to surrender their monthly excess or surplus income or don’t wish to surrender their excess income to Medicaid have another alternative, and that is to deposit their excess or surplus monthly income into a Medicaid approved pooled-income trust on a monthly basis.
How does a Medicaid approved pooled-income trust work in regards to the applicant’s monthly surplus or excess income:
Each month the Medicaid applicant/recipient would send a check of their excess or surplus monthly income to a Medicaid approved pooled-income trust of their choice.
An example of an applicant’s excess income is as follows:
Suppose the applicant’s income is $2,000 per month from social security and another $884 from a pension. The total of both pension and social security is $2,884 per month. Deducting the $884 Medicaid allows, the applicant is left with a $2,000 surplus or excess monthly income.
In addition to the excess income that an applicant will send to the pooled-income trust, they would also mail the bills they wish the pooled-income trust to pay, such as, rent, maintenance, telephone, credit card, mortgage, cable, and electricity, etc. By joining a Medicaid approved pooled-income trust, applicants/recipients can now use most of their monthly surplus or excess monthly income to pay for their monthly expenses. Utilizing a Medicaid approved pooled-income trust allows the Medicaid recipient the ability to stay longer in the Community and live in the surroundings they have come accustomed to and feel most comfortable at and have the ability to use their excess or surplus income on themselves rather than surrendering the surplus to Medicaid.