Medicaid Policy
Medicaid Policy
No Previous Policy
The portion of death benefits described in 417-6, which does not count as income because the funds are to be used for the last illness and burial expenses, do not count as a resource for one calendar month following the month of receipt. This one-month exclusion is to allow the receiver of the benefits time to pay the expenses. Any amount remaining the first moment of the second month following the month of receipt will be counted as a resource; this includes gifts, life insurance, and inheritances.
Death benefits that are a repayment of bills for a last illness and burial expenses that the individual has already paid count as resources beginning with the first moment of the month following the month of receipt. Death benefits that are not expected to be used for last illness or burial expenses count as resources beginning the first moment of the month following the month of receipt.