My dad would qualify for Medicaid based on his assets, but his income is too high to qualify. What can he do?
In New York, if your dad’s assets are below the $31,175 allowed by NYS but his monthly gross income is greater than the allowed $1,732, he won’t be denied community Medicaid but will be financially approved with a “spend-down” or “excess income.
To “activate” Medicaid, one must meet their spenddown. In New York, community Medicaid recipients, who are certified as disabled, may shelter their excess income in a pooled trust. The excess income deposited to a pooled trust is disregarded by Medicaid and in turn, can then be used to pay expenses of the Medicaid recipient (other than alcohol, tobacco, and firearms).
To maintain community Medicaid eligibility, the Medicaid recipient must deposit their surplus income to the pooled income trust monthly. A pooled income trust is established and managed by a not-for-profit company which acts as the trustee of the sub-account and reviews and approves the expenses submitted for payment by the Medicaid recipient and/or their authorized representative.
