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Address: 3914 Murphy Canyon Rd a202, San Diego, CA 92123
Phone: (858) 278-2800

Medicaid Program Eligibility Criteria

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In order to certify for Medicaid, the individual’s earnings need to be under a particular income level. Medicaid is administered at the state level, so the state develops the income level that the applicant can not exceed. How eligibility is figured out depends upon whether the state is thought about a spend-down state or an earnings cap state.

Spend-Down States

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Most states are spend-down states in which an applicant’s earnings need to be invested down on medical expenses prior to the candidate can end up being eligible for Medicaid. These states do not utilize Miller trusts since applicants receive Medicaid when their health care costs lower their income listed below the earnings standard used in the state.

Earnings Cap States

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In earnings cap states, Medicaid applicants who have earnings that is over the income eligibility guideline can not get approved for Medicaid unless they put excess income in a Miller trust. The state develops the earnings cap. The optimal earnings is usually 300 percent of the monthly SSI quantity.

Miller Trusts

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The Miller trust pays the Medicaid recipient a little regular monthly allowance. By redirecting income to the Miller trust, the candidate can become qualified for the program. Redirecting income involves putting it into an account that is entitled in the name of the trust, for example. The earnings that is part of this special kind of trust is not counted when determining whether the applicant is qualified for Medicaid so that the candidate has the chance to be qualified for this program.

Spouse’s Income

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The Miller trust can likewise pay the recipient’s spouse a small monthly allowance. However, any earnings over the quantity required for the recipient and his or her partner’s allowance is then used to pay the recipient’s share of his or her cost of care.

Mechanics of a Miller Trust

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Miller trusts are primarily utilized to help candidates end up being eligible for Medicaid advantages. Much of the funds that are initially deposited into a Miller trust account are often utilized to pay for the expense of the applicant’s care. If a Medicaid applicant receives income of $2,500 but the income cap is $2,205, the candidate would not qualify for benefits since her earnings is $295 more than the state income eligibility guideline. If a Miller trust is developed, the additional $295 could be deposited into a different account for the Miller trust even though many of the $2,500 will be used to pay the applicant’s share of her expense of care. Normally, the applicant’s entire government benefit check is transferred into an account that is listed under the name of the trust. By depositing the funds in this way, it prevents the candidate from having direct access to the earnings so that the funds can be divided between the site offering look after the applicant and the candidate’s regular monthly allowance.

Payments

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Miller trusts can be used to pay for a little month-to-month allowance, Medicare premiums and medical expenditures that are not covered by Medicaid or Medicare. In any occasion, the Miller trust can just be used to spend for the applicant’s permitted expenses.

Establishing a Miller Trust

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Unlike other types of trusts, there are limited restrictions on who can establish this kind of trust to receive government benefits. Any candidate of any age who would otherwise be eligible for the Medicaid program can establish a trust of this nature. Typically, an individual utilizes the services of an estate planning legal representative to create a trust of this nature. In the trust file, a trustee is named to administer the trust for the benefit of the candidate.