Does NY Medicaid disqualify you if you're living off savings, paying off credit card debt and you're not applying for LTC?

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Shmurls Asked December 2016

Does NY Medicaid disqualify you if you're living off savings, paying off credit card debt and you're not applying for LTC?

I have money in the bank that equals my credit card debt I've sadly built up while unemployed due to back and knee surgery and inability to work. I'm on commission, so no sales, no income or salary at all. If you add my debt and cash assets together, I'm bankrupt but you can't declare bankruptcy for credit cards, nor do I want to. It's my debt, I have to find a way to pay it off hopefully when I'm well again to work at which time, I probably won't qualify for Medicaid any longer either. But income wise I continue to today. I just turned 65 and got Medicare and don't have an 18 year old or younger in my home. I was getting Medicaid from the NYState Marketplace until this happened. Their rules state that I must now get Medicaid with my Local Dept of Soc. Services. The Marketplace never asked about assets on hand, and the application for LDSS does, but not about corresponding debt or even write offs, so I'm concerned if I'll lose my eligibility even though I really don't have any money when you factor in my debt. I've read that you can't have more than $2,000 cash and apply for Long Term Care (LTC) but I'm not. Just Medicaid which is used my my Dual Medicare Medicaid Empire Advantage Plan, which I hope I can keep which all depends on having Medicaid and Medicare. The Marketplace transferred my account to LDSS and apparently I was awarded/enrolled in NY Medicaid over from the Marketplace. I just need to submit LDSS's application which is done, but before I send it, I wanted to know about my money in my savings account which is a bit less than my credit card debt. Thank you.

Medicaid

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score 1 · Answer 1

The lady at center for disability rights is named Marsha Sweet. I'd recommend them. She's nice. Sometimes they get short staffed and the reimbursement time is slow but this lady just has receipts, not monthly bills/rent so I think those requests are priority. Otherwise, no issues in 2.5 years

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score 0 · Answer 2

@shmurls you do not have to be under 65. The lady I care for is 94 and got it 2 years ago. We are in NY and use center for disability rights as the trust holder. If you go to their site and look under pooled trust, you can see the info but every state has the same program but the name may be slightly different. Here's the short story of how it goes, if you haven't been declared disabled by ssa- you print out the medical forms and see your dr, he fills it out and you send to ssa, then they certify you disabled (it doesn't matter that you're past working age bc you're not trying to get ssi). You fill out the trust papers, send them and social services the disability certification, the trust gets set up, they tell Medicaid you have a trust, your Medicaid spend down is 0 but your monthly payment to the trust is the original spend down. Difference is that now the money is available for your needs, you either send them regular bills or receipts each month equal to your deposit and they pay the bill or pay you back. The only limits are can't be for gifts, illegal stuff, guns, liquor, cigs, stuff that Medicaid should pay or items paid with food stamps. It's actually not difficult or super time consuming and once you find a trust in your state, someone can talk you through the steps. There is a $20 monthly fee and annual $50 accounting fee for her.

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score 0 · Answer 3

Shmurls, I thought that you were told by your Medicaid advisor that your assets were okay?

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score 0 · Answer 4

I just read an article about D Trusts and see that they are intended for people under 65 and that I think you have to get SS Disability to show the beneficiary is truly disabled. I'm 65 now was hopefully only temporarily disabled from a back and knee injury and surgeries to correct the problems. I'm still healing but hope to be able to recovered in a year from what my surgeons tell me. But now I can't find work at this age or in my current disabled condition but have to meet Medicaid rules now. I think I just may be in a bad circumstance the timing of which there isn't a solution for? And I either have to spend down the income over $15k or lose medicaid? I can't believe this is happening.

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score 0 · Answer 5

@Hannahhonee. Could you or any one who uses one, tell us more Trusts and how they protect your savings regarding keeping Medicaid? I have had it awhile through our NY Marketplace that only asks about your income and I qualified. They never asked about savings. When you turn 65 in NY and get Medicare, your Medicaid has to be handled by Local Dept of Social Services and you have to fill out a new application and one of the questions, unlike NY Marketplace, is what are your Resources such as savings, checking, 401k, stocks, etc. I think the most you can have saved up is $15,000 which won't last very long.

To clear something up: I'm recovering from surgeries and haven't worked or earned anything in 6 months and am below the annual Medicaid income limit. All that I have is money in the bank that I've saved over the years which means after taxes. We're told all our lives to save and now, if I'm understanding Medicare's rules, if you do save and can't work, you still can lose or not get Medicaid?

Thanks!

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score 0 · Answer 6

sister has no earned credit ti get social security and medicare. she will be 65 soon . she lives with 90 year old mother for support. when mom passes will sister be able to get full assistantce from Medicaid in texas

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score 0 · Answer 7

You can go above the income, who told you that? It's just that if you go over you have to either spend down that amount monthly or get a trust. Those agencies are always giving bad info

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score 1 · Answer 8

She's wrong about 2k, in ny you can have up to 15k in assets. If you make over the monthly income limit, get a disability trust for the excess. We use cdr in Rochester

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score 0 · Answer 9

Shmurls, I'm so glad you were able to get the correct information!

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score 1 · Answer 10

Just goes to show that you should go to the agency that administers the program you want, rather than take half informed advice from the internet.

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score 0 · Answer 11

PS: your income is what they look at which you cannot go above what ever the amount limit is in your area/state.

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score 1 · Answer 12

Calling NY State Medicaid was definitely the correct advise. THANK YOU. While you cannot have more assets than $2,000 if you need Medicaid LTC, for just Medicaid your savings and money that you live off of does not disqualify you from getting or keeping your Medicaid, at least here in NY in my county.

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score 0 · Answer 13

Shmurls, let us know what you find out!

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score 1 · Answer 14

Thanks for that suggestion. Being the weekend, I assumed I couldn't talk to anyone at NY Medicaid until Monday, and was hoping to get a jump on that call Monday which I did, thank u all!

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score 0 · Answer 15

NYS has in person assistors and Navigators who assist folks applying for Medicaid at mo cost. Go on the NYS Medicaid site and find a person who has real information and who can answer your questions.

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score 0 · Answer 16

Shmurls, I think you need to go to the NYS Medicaid site, or call them up and ask.

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score 0 · Answer 17

I have $13,000 in my IRA. And $15,000 in savings that I pay from to pay down my cards and pay rent. I guess I've gotten a lot of bad information. I thought I'd heard that you couldn't have more than $2,000 if you wanted long term care which I don't.

So to get Medicaid for medical expenses or in my case, keep it, I have spend down my $28,000 ($13,000 IRA + $15,000 savings) down to $26,000?

My savings is the only money I have to pay rent, my monthly credit card debt and basic living expenses since I'm not earning money due to my surgeries. If I only have $2000 to my name, I'll be homeless. Literally. Is that how this works? Everyone who has Medicaid only has $2,000 to their name? This is tough. The NYState Marketplace Medicaid only cared about your income being less than I think it was $17,000 which is my situation. They expect you to cash in your IRA too? Thanks.

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score 0 · Answer 18

First, pay off the credit cards. Get the bank balance under the 2K limit. Then do the application. If you don't Medicaid won't pay.

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score 0 · Answer 19

Of course you can declare bankruptcy for credit cards. You are getting bad information!

The only debts you cannot discharge in bankruptcy are....some (most) student loans, some (special cases) tax debt, judgements against you for personal liability (like hurting someone while drunk driving).

Oddly, once you turn 65.. the "old Medicaid" rules apply. Your assets are no also considered in the mix. You will need to meet the spend down limits to qualify.

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Does NY Medicaid disqualify you if you're living off savings, paying off credit card debt and you're not applying for LTC?

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