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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 2

Income Trust Requirements (Continued) – Please read carefully: Paying the private pay rate to the facility for a late month admission may be less than the amount payable to Medicaid. If this option is chosen, the individual assumes full financial responsibility for the month of entry.

6. In all subsequent months or if income is not protected for the month of entry, the income that is payable to the nursing facility, referred to as Medicaid Income, and any income that funds the trust must be handled as follows:

• If income of the individual is less than the per diem payment the Division of Medicaid will make to the facility for any month, all income of the individual (less authorized deductions) must be paid directly to the nursing facility as Medicaid Income. This determination is made based on the daily Medicaid rate payable to the facility, which varies depending on the facility and days in the month.

• If income of the individual is more than the per diem payment the Division of Medicaid will make to the facility in any month, the income in excess of the Medicaid payment must fund the trust until such time that payment of the accumulated Income Trust funds is requested by the Division of Medicaid. A bank account that is separate from the account used for the individual’s living expenses must be established for income that must fund the trust. The account does not have to be styled as a trust account; it only has to be a separate account for accumulated funding that will be electronically verified by the Division of Medicaid for compliance with the Income Trust provision. If electronic verification is not possible, the individual must verify the separate account and account balance at the time of application and at each annual review.

• The Trustee will be notified in writing of the amounts payable to the nursing facility and of any amount of income that must fund the Income Trust for each month of Medicaid eligibility under the Income Trust.

7. A letter specifying the payment due from accumulated trust funds will be issued at each review of the individual’s Medicaid eligibility, which is at least annually, while the Income Trust is in existence. Failure by the Trustee to make the payment by the due date specified in the letter will result in the loss of Medicaid eligibility for the individual.

8. When requested, the Trustee must provide an accounting to the Division of Medicaid to show all receipts and disbursements of the Income Trust during the prior calendar year. Any disbursements not approved by the Division of Medicaid or provided for by the Income Trust will result in the loss of Medicaid eligibility for the individual.