Medicaid Policy
Medicaid Policy
If a member has a trust, the member must provide a periodic financial account review. This applies to members with a Special Needs trust or a Pooled Trust, as well as any member who has an irrevocable trust that is not a countable a resource so the member is still eligible for Medicaid.
The accounting must show:
income the trust has received,
payments made with trust funds,
who received payments, and
the purpose of such payments (goods or services purchased and how they benefited the disabled individual.)
Verification of assets purchased with trust funds and an inventory of trust assets may also be necessary to establish ownership and value.
The member or her representative must provide the accounting upon request of the eligibility worker, but no less frequently than annually.
If a change to the trust is reported, review the trust to determine continued eligibility.
The accounting must be detailed enough for the eligibility worker to determine whether any payments count as income, are for goods or services that benefit the member, or are possible transfers of assets.
The eligibility worker may require additional information or verifications.
An accounting should be sent to the Medicaid agency when there is a change of trustee.
When a trustee resigns and a new trustee is appointed, the exiting trustee completes an accounting for the new trustee.
The trustee should send this trust accounting to the member or her representative and the member or representative needs to provide this accounting to the Medicaid agency.
The purpose of this is to complete all work the exiting trustee did so that the new trustee only has to account for transactions from the point in time the new trustee takes over.
Some payments from the trust may count as income. See sections 512-2.2 and 512-2.3 to determine what counts as income.
Failure to provide an accounting as requested by the eligibility worker will result in case closure.