Medicaid Eligibility Options for Older Adults in Connecticut

Nobody wants to think about needing long-term care in a nursing home in Canton, yet a high percentage of Connecticut residents will need some type of long-term care in their later years. Since nursing home and other long-term care costs are so high, most Connecticut residents will work with an elder law and estate planning attorney to protect assets while making themselves eligible for Medicaid. To be clear, older adults in Connecticut will often rely on Medicaid for long-term care even if their income and assets were not even close to Medicaid eligibility when they were younger. In order to qualify for Medicaid while protecting assets, it is necessary to have limited countable assets and income.

Without completely spending down assets, what other options do older adults in Connecticut have?

No Miller Trusts in Connecticut

Unlike many other states in the country that allow older adults to place certain assets into a Medicaid-eligibility trust known as a Qualified Income Trust (QIT) or Miller Trust, Connecticut state law does not recognize this type of trust. Accordingly, even if you have a friend or family member in another state who effectively became Medicaid eligible by placing income into a QIT, it is critical to know up front that this is not an option for Canton residents. Instead, you will need to speak with an attorney about other options for spending down and Medicaid eligibility.

Medical Spend-Down Program for “Medically Needy” Residents

First, you or your elderly parent may be able to obtain Medicaid coverage for long-term care via Connecticut’s Medical Spend-Down Program, which is also known as the medically needy older adults. To be clear, this option does not protect assets and hold them for the future after the older adult no longer requires long-term care. Instead, this program allows older adults with unpaid medical bills and expenses to use their savings to pay medical costs. Those costs can include bills, as well as insurance premiums.

Deposit Income Into a Pooled Income Trust

Another option is to take incoming income and deposit it into a pooled income trust. This is a particular type of special needs trust (or SNT) in Connecticut that can hold certain income for an older adult so that they can become eligible for Medicaid to cover their nursing home care. However, remaining money in this type of trust, upon the older adult’s death, will be paid to the Medicaid programs in Connecticut to repay for the cost of the senior’s long-term care that was covered by Medicaid.

Contact a Canton Elder Law Attorney for Assistance

To avoid completely spending down savings by paying for long-term care until you reach the point of becoming eligible for Medicaid, it is important to seek legal help about options. If you begin planning with enough advance notice, you may have additional options for protecting assets while being eligible to have Medicaid cover long-term care. An experienced Canton elder law and estate planning lawyer at the Law Office of Brian S. Karpe can speak with you today about potential options. Contact us for more information.

Sources:

portal.ct.gov/-/media/departments-and-agencies/dss/brochures/medical-medicaid-medicare/spndown.pdf

portal.ct.gov/oha/health-care-plans/other-plans/medicaid?language=en_US