LIFE INSURANCE POLICY n Total FV of Life

LIFE INSURANCE POLICY n Total FV of Life Insurance vs $1500 n If FV ≤ $1500 then CV is Exempt Use resource Code 44 in MBL n If FV > $1500 then CV Counts Use resource Code 42 in MBL n FV is never entered into MBL ~

LIFE INSURANCE POLICY n Total FV of Life Insurance vs $1500 FV $900 CV $1200 CV is Exempt ~ Example 1 (44)

LIFE INSURANCE POLICY n Total FV of Life Insurance vs $1500 FV $800 $1000 $1800 CV $900 $1200 CV is Counted ~ Example 2 (42)

Burial Funds • Any liquid resource that an individual chooses to officially acknowledge as a fund for the purpose of burial

Burial Funds (cont’d) • Can not co-mingle funds • Has to officially acknowledge funds as “Burial Fund” – Access NY Supplement A (DOH-4495 A) or – Burial Reserve Acknowledgement (DSS-3827) or – Written statement

Burial Funds (cont’d) • Maximum of $1500 disregard for burial fund ($3000 for a couple)

BURIAL FUNDS n Maximum of $1500 disregard for BF burial fund ($3000 for a couple) NO OTHER RESOURCES BF $1700 -$1500 BF exempt (45) $200 (02) or (98) – if not a Bank Account n (45 = Burial Reserve to be disregarded for SSI budgeting) ~ Example 1

BURIAL FUNDS n Maximum of $1500 disregard for BF burial fund ($3000 for a couple) NO OTHER RESOURCES BF n $1300 Could still put $200 more into Bank Account and have it exempt. n (45 = Burial Reserve to be disregarded for SSI budgeting) ~ Example 2

Funeral Agreement • A contract in which money is paid to a funeral director in return for furnishing specified services and/or merchandise upon the death of the person to whom the contract pertains

Funeral Agreement (cont’d) • Includes: – Burial Spaces – Non-burial space monies • Two types: – Revocable – Irrevocable

Irrevocable • Effective 1/1/97 only available to Medicaid or SSI A/Rs • Effective 1/1/2011 available to Medicaid or SSI A/R’s and their immediate family members when purchased by a A/R or his/her spouse

Irrevocable (cont’d) • Immediate family members include SSIrelated A/R's: – spouse – minor and adult children, – stepchildren and adoptive children, – brothers and sisters, – parents and adoptive parents, and – the spouses of these persons.

MA Treatment of Irrevocable • Funds used to purchase an Irrevocable agreement for an A/R’s Family Member other than a Spouse are countable resources for the A/R until the month following the month in which the funds are actually paid to a funeral director

MA Treatment of Irrevocable (cont’d) n Retroactive Eligibility • can be obtained by spending down excess resources on a funeral agreement for the A/R’s spouse • cannot be obtained by spending down excess resources on a funeral agreement for a family member

MA Treatment of Irrevocable (cont’d) • Cannot be “refunded” • Exempt regardless of value • Balance after burial returned to LDSS

BURIAL FUNDS n Irrevocable Funeral Agreements and relationship to Burial Fund NO OTHER RESOURCES $8000 Irrevocable FA -$6700 Burial Space items $1300 Non-Burial Space items n They can have $200 more in a BF ~ Example 1

BURIAL FUNDS n Irrevocable Funeral Agreements and relationship to Burial Fund NO OTHER RESOURCES $10, 000 Irrevocable FA -$ 5, 700 Burial Space items $ 4, 300 Non-Burial Space items n They n The have a full $1500 in NBS items full amount of the irrevocable FA is exempt. No additional BF is allowed.

Revocable • Can be “refunded” • Only type of funeral agreement available before 1/1/97

A/R’s Revocable Established Prior to Medicaid Application • Can convert to irrevocable OR • Only non-burial space monies up to $1500 exempt – Burial spaces not exempt NOTE: If A/R’s Revocable Established Before 1/1/97 and If A/R began receiving Medicaid before 1/1/97 with no break in coverage: see MRG Resources pgs 366 and 366. 1

REVOCABLE FUNERAL AGREEMENTS n A Revocable Funeral Agreement was established October 2010. The client is applying for Medicaid today. you look through and $11, 000 Revocable FA -$10, 000 BS items (02) or (98) $1000 Non-BS items (45) determine $10, 000 in BS items n $10, 000 n They Counts as a resource can still have an add. $500 BF – but we don’t exempt $500 of the BS items.

BURIAL FUND EXEMPTION n BF Exemption is $1500 n First apply FV of Exempt Life Insurance LI: FV $800 $300 $1100 Client also has… BF: $1000 -$400 (45) $600 (02) ~ CV $1000 (44) $600 (44) Cash Value is Exempt BF EX $1500 $1100 $400

BURIAL FUND EXEMPTION n BF Exemption is $1500 n First apply FV of Exempt Life Insurance LI: FV $700 $900 $1600 Client also has… BF: $1800 -$1500(45) $300 (02) ~ CV $900 (42) $1300 (42) Cash Value is Counted BF EX $1500

BURIAL FUNDS n Irrevocable Funeral Agreements, Life Insurance and Burial Fund $3000 Irrevocable FA - $1700 Burial Space items $1300 Non-Burial Space items n They can have $200 more in a BF n First apply FV of Exempt Life Insurance LI: FV $700 CV $900 (44) $200 - $700…no further BF allowed This LI is Exempt