Effective January 1, 2016, the Medically Needy Income and Resource Levels are $825.00 per month and $14,850.00 respectively. These are the same amounts as last year. The Department of Health explains that “[w]ith consumer prices down over the past year, Social Security and Supplemental Security Income (SSI) benefits will not increase in 2016. Therefore, the Medically Needy income and resource levels will not increase effective January 1, 2016, and will remain the same as in 2015. As a result, the Mass Rebudgeting (MRB) that is normally performed in November for January 1, 2016 budget changes did not occur.” i
Individuals with assets below $14,850.00 are eligible for Medicaid.
Example: Stuart of Smithtown, NY has a bank account that totals $14,000.00. He owns no other assets and has made no gifts within the last five years. He is financially eligible for Medicaid to pay for the costs of his stay in a Nursing Home; his assets are below the $14,850.00 resource limit.
Example 2: Carmine of Commack, NY owns the following assets:
Pre-paid funeral trust $15,000.00
Bank accounts totaling $14,000.00
Carmine is financially eligible for Medicaid to pay for the costs of his stay in a Nursing Home; his assets are below the $14,850.00 resource limit. One car and a pre-paid funeral trust do not count towards the $14,850.00 resource limit; they are exempt resources.
To be continued ….
Aaron E. Futterman, CPA, Esq. is a partner in the law firm of Futterman & Lanza, LLP with offices in Smithtown, NY and clients throughout Suffolk, Nassau, Queens, Brooklyn, Bronx, Richmond, New York, Westchester and Rockland Counties. He concentrates his practice to Elder Law, Medicaid Planning, Medicaid Applications, Estate Planning, Probate, Estate Taxes, and Estate Administration.