Charitable Pooled Income – Utilizing Income Overages
MYTH: “I earn too much income to qualify for Home Care Medicaid.”
FACT: If you qualify for Home Care Medicaid, you will receive your full income every month while receiving services. The first $1,800.00 of income can be kept outright, along with a credit for any supplemental insurance payments (such as AARP, Cigna, etc.).
Any income above $1,800.00 is considered an income overage. This includes Social Security, pension, IRA distributions, 401(k), etc. In New York, you do not need to forfeit your income overage. Instead, you can utilize your entire overage by working with Charitable Pooled Income Trust Companies, provided you have bills to apply the overage toward.
It is important to note that, for the purpose of determining the required minimum distribution (RMD) of an IRA or 401(k), the applicable calculation depends on the county you reside in. Some counties use the standard IRS life expectancy table, while others use the Medicaid life expectancy table.
Hypothetical Example:
A Medicaid applicant earns $3,800.00 per month in gross income (Medicaid considers gross, not net income). The full amount will be deposited into their account. The applicant can keep and spend the first $1,800.00 freely. The remaining $2,000.00 overage will be sent each month to a licensed Charitable Pooled Income Trust Company. The trust company will deduct a nominal fee (with a maximum of $200), leaving the remaining $1,800.00 available for use on any and all bills in the Medicaid recipient’s name.
Eligible expenses include:
•Rent
•Mortgage payments
•Property taxes
•Credit card bills
•Debit card purchases
•Home repairs
•Gas and electric bills
•Additional home care services
The primary limitation is that expenses must directly benefit the Medicaid recipient.
If there are not enough bills in a given month to utilize the full overage, the remaining balance carries over for future use. However, unused funds do not return to the recipient’s estate upon death. Therefore, it is a “use it or lose it” benefit during the recipient’s lifetime.
Bonus Question:
Is there a single person who, by virtue of earning a high income, would be ineligible for Community Medicaid?
Answer: No. There is no income cap for Community Medicaid, provided the individual has bills to utilize their income overage. The only individuals who may not benefit from this program are those with substantial income but insufficient expenses to apply their overage toward.
About GR Homecare
GR Homecare is a licensed home care agency serving Nassau County and the five boroughs. We understand that navigating the home care process can be overwhelming, and we are here to guide you through Medicaid enrollment efficiently, every step of the way.
Please note: The information provided above is not legal advice. GR Homecare collaborates with experienced Elder Law Attorneys who can provide legal guidance tailored to your specific situation.
Choosing the right home care services for an elderly loved one can be challenging. Our compassionate and professional team listens to your concerns and provides high-quality care to meet your loved one’s needs. With GR Homecare, your family member will receive the support and peace of mind they deserve.
Many seniors prefer to remain in the comfort of their own homes, where they feel most independent and at ease. Staying at home promotes well-being and happiness. GR Homecare specializes in delivering comprehensive home health care services that help seniors maintain their independence and dignity.
We are here to support you at every stage of the process.
For more information, please contact Brina Ganchrow at 718-998-1999.