Medicaid Policy
Medicaid Policy
No Previous Policy
If an individual buys an excluded life insurance policy (521-16) or an irrevocable pre-need funeral contract (594) after designating burial funds, the purchase will reduce the available amount of the burial fund exclusion.
Reduce the burial funds exclusion by the face value of the excluded life insurance or by the purchase price of the irrevocable, fully-paid pre-need funeral contract.
The reduction is effective the month after the month in which the individual bought the life insurance or the irrevocable pre-need funeral contract.
The ratio of excluded to non-excluded designated funds may also change. If the burial funds were all excluded funds before, there may now be both excluded and non-excluded funds. Determine the ratio of excluded funds to total funds. (592-6)
The purchase of other burial assets may result in an increase in countable resources.
Additions to Excluded Burial Funds
When the designated amount of burial funds is less than $1500 or the available amount of the exclusion, you can exclude additional funds that the individual designates for burial up to the maximum or the available exclusion amount. Do not count accumulated interest on excluded burial funds to decide if the funds have reached the maximum or the available amount of the exclusion.
When the designated amount is at the maximum $1500 or at the available amount of the exclusion, the only additions that can be excluded are interest or other increase in value of the excluded funds. Any other funds designated for burial count as a resource.