| Pooled Income Trusts and Medicaid Home Care | | | | Security Administration. Consumers under sixty-five |
| Disabled persons of any age receiving community | | | | who have received either a Social Security disability |
| Medicaid services - including home care, adult-day care | | | | finding or a Group 1 Disability Approval from Medicaid |
| and prescription drugs - are now able to use virtually all | | | | are also not required to have another disability review |
| of their income to pay for their living expenses by | | | | but must provide documentation of disability findings.For |
| participating in a pooled-income trust. It is no longer | | | | those whose disability has not yet been established, |
| necessary for consumers to contribute their "excess" | | | | Medicaid will make the determination on the basis of |
| income to the Medicaid system as a "spend-down." | | | | completed and signed forms LDSS-1151, DSS-486T |
| The pooled trust is proving to be a popular planning tool | | | | and MAP-252F.In order for a person to participate in |
| for persons in need of long-term health-care services | | | | the trust, a joinder agreement between the beneficiary |
| for whom the excess-income option did not work | | | | and the trust must be completed. |
| because it would not allow them sufficient money to | | | | The agreement must be signed by the disabled |
| live in the community and qualify for Medicaid. The | | | | individual (who must have capacity), or by a parent, |
| program works as follows:o Suppose Mr. Smith has a | | | | grandparent, guardian or a person acting under a |
| monthly income of $1,745 in Social Security and | | | | durable power-of-attorney (with specific authority for |
| pension income and is utilizing Medicaid home care and | | | | joining a pooled trust), or the agreement must be |
| adult day-care services. Under present (2007) | | | | approved by the court. To initiate the process of |
| Medicaid guidelines he is only allowed to keep $745 of | | | | conserving his "excess" income the individual |
| that income.o Currently his monthly surplus is $1,000 | | | | beneficiary should deposit into his separate trust |
| ($1,745 - $745 = $1,000). He is sending a check each | | | | account the equivalent of two months' excess income |
| month for that amount to the appropriate health-care | | | | (one month as a deposit and the other as working |
| provider as a contribution toward the cost of his care.o | | | | capital).While there are no restrictions attached to the |
| After Mr. Smith joins the pooled-income trust his $1,000 | | | | establishment or addition of funds to an |
| check will be sent to the trust office. He will keep $720 | | | | already-established pooled trust by an individual under |
| as he does now. Mr. Smith's expenses for rent, food, | | | | sixty-five, there are restrictions on the transfer of |
| utilities, clothing, etc. will be paid by the trust according | | | | funds into a pooled trust by an individual sixty-five or |
| to instructions from Mr. Smith or his representative. Mr. | | | | older. If a disabled individual either first establishes or |
| Smith's Medicaid services will not be affected.The | | | | adds funds to an already existing pooled trust after he |
| pooled-income trust contains the assets of a number | | | | turns sixty-five that transfer of assets is subject to the |
| of disabled individuals and is managed by a non-profit | | | | appropriate penalty period for Medicaid coverage of |
| organization that maintains separate accounts for | | | | nursing facility services. Please see the article on |
| each individual. It is effectively a supplemental-needs | | | | Medicaid Update - The Good News. |
| trust that receives the beneficiary's monthly income | | | | All pooled-income trust cases must be reviewed by |
| and redistributes it on his behalf as directed by the | | | | government attorneys before a final determination of |
| beneficiary or his representative. | | | | eligibility is made. Before proceeding with the |
| Generally, consumers of any age (including those age | | | | pooled-income trust, individuals and their families are |
| sixty-five or older) who wish to establish pooled-trust | | | | strongly encouraged to consult with an attorney who |
| accounts are required to have a disability evaluation as | | | | has knowledge of and experience in planning for |
| part of the eligibility determination process unless they | | | | long-term-care needs. |
| have already been determined disabled by the Social | | | | |