What is a possible strategy for qualifying for Medicaid when a patient's funds exceed the income cap?

A Qualified Income Trust (QIT) is a legal arrangement specifically designed to assist individuals in qualifying for Medicaid when their income exceeds the allowable limits. The primary function of a QIT is to effectively reduce the countable income of the individual by redirecting excess income into the trust, which is not counted when determining eligibility for Medicaid benefits.

In Florida, for example, individuals who require long-term care and have income above the state’s cap can place their excess income into a QIT. The funds deposited into the trust can then be used for approved expenses, typically supporting the beneficiary’s care needs. This strategic setup allows the individual to remain eligible for Medicaid despite having income that would otherwise disqualify them.

Contrarily, a standard savings account does not provide the same protective measure for excess income; it is part of the individual’s countable resources. A revocable trust generally does not shield income from Medicaid eligibility limits and can still be counted against eligibility criteria. An Income Trust Fund is a less specific term and may not accurately describe the mechanics of a QIT or its purposes under Medicaid rules.

Thus, utilizing a Qualified Income Trust is a proven strategy for someone facing the challenge of exceeding the Medicaid income cap, allowing them to receive necessary medical and support