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MISSISSIPPI DIVISION OF MEDICAID LONG TERM CARE INCOME TRUST – HELP SHEET

Long Term Care Income Trust Help Sheet, Revised June 2020 Page 1

The purpose of an Income Trust is to allow an individual with recurring excess monthly income who has exhausted all available resources to become eligible for Medicaid while in a nursing facility. Certain conditions apply which are outlined below. The federal authority for an Income Trust is found in Section 1917 (d) of the Social Security Act (42 U.S.C. §1396 p (d) (4)). Basic Income Trust Rules: 1. A Long Term Care Income Trust is available for someone receiving an institutional level of care in a nursing facility. An Income Trust is not available for someone in an acute care hospital or Psychiatric Residential Care Facility (PRTF).

2. An individual requiring an Income Trust who has a court appointed conservator must furnish a copy of the Chancery Court Order authorizing the conservator to establish the Income Trust. The court must be made aware of the Income Trust requirement to pay the MS Division of Medicaid any accumulated trust funds up to an amount expended by Medicaid under the terms of the Income Trust. Income Trust Requirements – Please read carefully: 3. Income that funds the Income Trust is all income due the individual from all sources such as Social Security, pension benefits, interest income and any/all other types and sources of income.

4. The Income Trust must specify the effective date of the trust. The effective date is the date the individual is determined eligible for Medicaid on all factors which may be up to three (3) months prior to the month of the Medicaid application provided the Income Trust is properly funded. Consultation with the Medicaid Regional Office is needed prior to the execution of the trust to confirm the effective date needed. Medicaid eligibility can begin in a month later than the stated effective date of an Income Trust but Medicaid eligibility cannot begin in any month prior to the stated effective date of an Income Trust. An executed Income Trust without an effective date will begin on the date the trust is signed and dated if the individual is otherwise eligible. It is important that you review #5 below to consider month of entry requirements for the individual’s income.

5. In the month of entry to a nursing facility, income may be protected, which means the individual does not contribute toward the cost of care in the facility for any partial month of entry into the facility from the individual’s home. For an individual eligible for Medicaid under the terms of an Income Trust, income that may be protected in the month of entry is limited to income that is $1 less than the institutional limit in effect at the time of entry into the facility. Income above this amount is payable to the Division of Medicaid within thirty (30) days of the notice issued by the Division of Medicaid approving eligibility for the individual. The approval notice will specify the amount payable for the month of entry. NOTE: The individual has the option to request that Medicaid eligibility be delayed until the month following the month of entry to avoid paying the Division of Medicaid the excess income due in the month of entry. This option may be beneficial to the individual if entry into the facility is at the end of the month.