Life Insurance Policy Total FV of Life Insurance

Life Insurance Policy Total FV of Life Insurance vs $1500 • If FV ≤ $1500 then CV is Exempt – Use resource Code 44 in MBL • If FV > $1500 then CV Counts – Use resource Code 42 in MBL • FV is never entered into MBL

Life Insurance Policy Total FV of Life Insurance vs $1500 FV $900 CV $1200 (44) CV is Exempt

Life Insurance Policy Total FV of Life Insurance vs $1500 FV CV $800 $900 (42) $1000 $1200 (42) $1800 CV is Counted

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 Fund Example No Other Resources $1700 Burial Fund -$1500 BF Exemption (45) $200 (02) or (98) – If not a Bank Acct (45=Burial Reserve to be disregarded for SSI Budgeting)

Burial Fund Example, cont’d. No Other Resources $1300 Burial Fund • Could put $200 more into a Bank Account which will remain exempt. (45=Burial Reserve to be disregarded for SSI Budgeting)

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. 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

Irrevocable Funeral Agreement & Burial Fund No Other Resources $3000 Irrevocable Funeral Agreement -$1700 Burial Space Items $1300 Non-Burial Space Items (Can have $200 more in a Burial Fund)

Irrevocable Funeral Agreement & Burial Fund No Other Resources $3000 Irrevocable Funeral Agreement -$1000 Burial Space Items $2000 Non-Burial Space Items They have a full $1500 in NBS items The full amount of the irrevocable FA is exempt No additional BF is allowed

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

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 Agreement was established October 2010 Applicant is applying for Medicaid today $4000 – Revocable FA -$3000 – BS Items (02) or (98) $1000 – Non BS Items (45) (prorate interest ¼) $3000 is a Countable Resource Can have an additional $500 BF Do not exempt $500 BS items

Burial Fund Exemption BF Exemption - $1500 First apply FV of Exempt Life Insurance LI: FV $800 $300 $1100 CV $1000 (44) $ 600 (44) Cash value is Exempt A/R also has a Burial Fund BF: $1000 -$ 400 (45) $ 600 (02) BF EX $1500 $1100 $400

Burial Fund Exemption BF Exemption - $1500 First apply FV of Exempt Life Insurance LI: FV $700 $900 $1600 CV $900 (42) $1300 (42) Cash value is Counted A/R also has a Burial Fund BF: $1800 -$1500 (45) $ 300 (02) BF EX $1500

Irrevocable Funeral Agreement, Life Insurance & Burial Fund $3000 Irrevocable FA -$1700 Burial Space items $1300 Non-Burial Space items – Can have $200 more in a BF First apply FV of Exempt Life Insurance LI: FV CV LI is $700 $900 (44) Exempt $200 - $700 …. No further BF allowed