Medicaid
Eligibility is determined by resources, income and medical necessity. Medicaid assists eligible patients with the monthly cost in a nursing home for both skilled and intermediate care. The patient's monthly income minus $40 per month for personal use, is applied to the monthly cost of the nursing home. Medicaid adds to the amount the patient has as income, to reach the total amount required by the nursing home.
What resources can I have and still be eligible for Medicaid? The resources of a person applying for Medicaid as well as their spouse are considered. The spouse who remains at home may keep a minimum monthly cash allowance of $2,003. Depending on allowable expenses this amount can increase to a maximum of $3,023 per month. The maximum cash resources cannot exceed $120,900 (2017 allowance).
How does Medicaid define resources? Resources are defined as cash money and any other personal or real property that person or couple owns. Resources may include, but are not limited to: checking accounts, stocks & bonds, certificates of deposit, automobiles, land, burial reserves, life insurance policies, and savings accounts.
What resources are exempt and not considered in the Medicaid eligibility determination?
- $1,500 - $2,000 (for use by the nursing home resident)
- The home, if the applicant has been in a nursing home less than six months or if the home is occupied by a spouse, dependent or disabled child, or a sibling with an equity interest who has lived in it for at least a year
- One vehicle, regardless of value
- The cash surrender value of the nursing home resident's life insurance policies if the face values of all policies total $2,000 or less
- An irrevocable pre-burial contract and burial plot
- A trust established by will or someone other than the nursing home resident or spouse
- Any resource not available to the nursing home resident
When can Medicaid coverage be jeopardized? If resources are transferred 60 months or less prior to the Medicaid eligibility application month, it is presumed that the transfer of resources was for the sole purpose of establishing Medicaid eligibility. The Department of Human Services does investigate transferred resources. If the transferred resources are found, approval for Medicaid benefits could be jeopardized.
Income The monthly income of the person applying for Medicaid may not exceed the cost of one month in a nursing home. Income is defined as money received from statutory benefits, (social security, VA pension, Black Lung benefits, and Railroad Retirement benefits), pension plans, rental property, investments or wages for labor or services.
How do I apply for Medicaid coverage? Contact the Kentucky Cabinet for Health and Family Services at 908 West Broadway, Louisville, KY 40203 (502) 595-4958. You may also want to seek the counsel of an Elder Law attorney.
