Spousal Impoverishment Budgeting

New Changes in Spousal Impoverishment Budgeting:

On August 5, 2014 New York State Department of Health issued their famous GIS (General Information System), GIS 14 MA/015, which basically eliminated the use of a pooled income trust for a married individual.  It meant that excess or surplus income (in 2014 $809 per month), was not allowed to be deposited in a pooled income trust, but rather be surrendered to Medicaid.  Medicaid had a budget that included the well spouse’s income and limited the ill spouse to a monthly income of no more than $383 per month. Many of the otherwise eligible individuals decided to opt out of the Medicaid program or simply not apply.  However, as recent as November 2014, New York State Department of Health issued a new GIS 14 MA/025, indicating “Spousal Impoverishment Budgeting with Post-Eligibility Rules,” that which the earlier GIS discussed, “to Couples with a Spouse Receiving Home and Community-Based Services Pursuant to a Waiver or Enrolled in a Managed Long Term Care Plan,” is rescinded.

What does this mean to the average couple?

If one spouse is in need of home care services, the well spouse can sign a spousal refusal and only the ill spouse’s income will be subjected to the following:  If the ill spouse receives more than the allowed income per month (in 2015 $825), the excess or surplus will have to either be surrendered to Medicaid or the Medicaid recipient can join a pooled income trust and deposit their surplus income into that trust.  The Medicaid recipient can then instruct the pooled income trust to use their money to pay any of their bills. This option was removed or taken away with the August 5, 2014 GIS, however, it’s was improper and therefore reversed.