NJ Medicaid issues Guidance on new Qualified Income Trusts

I previously posted about the upcoming changes to the New Jersey Medicaid programs that pay for nursing home care and home and community-based services (HCBS) for people whose gross monthly income exceeds $2,163. This amount was formerly called the “income cap,” and people in that group could only receive Medicaid benefits in nursing homes. That was under the “Medically Needy” program. Going forward, the Medically Needy Program is being replaced for new applicants. Under MLTSS, the State will now require that the income be transferred into a Qualified Income Trust (QIT) which used to be colloquially referred to as a “Miller Trust.” The State has published some guidelines about the process on the DMAHS website.

Here at FRE-L, we are developing a process to help our clients set up and administer a QIT so that they can have it in place by the time the person’s assets have been reduced to the necessary level for Medicaid eligibility. https://www.ershow-levenberg.com/medicaid_nj.html   We  are ready to help you with every step of this process. We will provide detailed instructions and assistance to you.

If you are planning to file a Medicaid application for someone whose gross monthly income exceeds $2,163, you have to handle the income in a particular way so that it is funneled through the Trust every month before it is then disbursed for the expenditures that are allowed under the Medicaid program. Eligibility will be at risk if this isn’t done correctly. As of now, this structure will be required for all applications beginning 11-1-2014. It will likely take at least a month for you to get it all in place. First, the Trust must be prepared. Next, the bank account for the trust must be set up. Next, the arrangements to get the income into the trust each month must be implemented. Finally, you will establish the routine for the monthly disbursements from the trust.

Once the structure is in place, the trustee will be issuing several payments each month out of the trust: (1) Personal Needs Allowance for the applicant (currently $35 PNA); (2) support for the community spouse, if authorized, to fund their MMMNA or Minimum Monthly Maintenance Needs Allowance (MMMNA) in an amount that is calculated per the regulations or court order; (3) incurred medical expenses and (4) cost share for medical assistance.

Call us for legal advice and assistance with Medicaid applications and NJ Qualified Income Trusts  … 732-382-6070