As you age, you might be considering moving into a retirement community. One of your top concerns would be financial issues. If you have savings or family members supporting you financially, you probably don’t have to worry too much about the finances. On the other hand, if you require financial assistance to cover the costs, you can consider Medicaid.
Medicaid is a federal-state partnership that provides medical coverage to low-income individuals who qualify. The goal of Medicaid is to enhance the health of persons in Texas who would otherwise go without medical treatment for themselves and their children. Medicaid can also provide coverage for assisted living and in-home care for those who qualify. Find out how you can be eligible for Texas Medicaid.
Eligibility Criteria for Texas Medicaid
To meet the eligibility criteria, you need to be a Texas resident, a U.S. citizen, a national, permanent resident, or a legal alien who requires health assistance and meets the income requirements. Other criteria include:
- 65 years old and above
- Pregnant or
- Is responsible for a child who is 18 years old or younger or
- Is disabled or have a family member with a disability
As of 2020, single applicants applying for Medicaid should not have a monthly income above $2,349. For married couples who are both applying, their income must not exceed $4,698 a month. So what happens if you exceed the income ceiling? Here’s where Qualified Income Trust comes into the picture.
What Is a Qualified Income Trust?
If your income exceeds the limits set out by Medicaid, you can still be eligible if you use a Qualified Income Trust (QIT). The QIT was created to address the rising discrepancy between Medicaid eligibility limits and the high expense of long-term elderly care. It enables you to lawfully transfer income into a Trust, thus decreasing the amount of your income that is assessed against Medicaid limits. It is a particular form of trust for the elderly who require long-term care but have income that exceeds Medicaid limits. A Trust enables a third person (the trustee) to manage assets on behalf of the beneficiary.
Here, you establish a special account for the Trust, which will receive the income required to ensure that your income falls within the qualifying limit. You contribute money to the Trust, and the Trust decides how funds are disbursed each month. Trust funds can be disbursed for:
- Medical costs not covered by Medicaid
- A small sum for personal needs allowance
- Co-payment for nursing home
- A monthly allowance to your spouse, if applicable
Is Qualified Income Trust Suitable for You?
A QIT can be an excellent answer for many people who are concerned about the cost of long-term care. Medicare doesn’t cover the cost of assisted living and long-term care insurance may only cover a portion of it. Under such circumstances, QIT can benefit you by helping you qualify for the Medicaid program. This can make a significant change and lift the financial burden off you or your family’s shoulders.
