Policy                                                                           Issuance Number: MS 05-06

Medical Services Policy Manual                           Issuance Date: October 21, 2005

From: Joni Jones, Director                                       Expiration Date: Until Superseded

Subj: Revised Policy: MS 3336.9 Removing Income Trust Cap

Sections to be Deleted                   Dated                      Sections to be Added                   Dated

3336.8 #6 – 3336.9#4                11-15-97                   3336.8 #6 – 3336.9#4                 08-15-05

3336.9 #10 - #13                        11-15-97                  3336.9 #10 - #13                         08-15-05                                                                

Summary of Changes

Effective August 15, 2005, the income cap was removed from Income Trusts.  This will allow individuals with income over the current income cap of the Skilled Care rate for a 31-day month in a facility to become eligible for Long Term Care Medicaid by establishing an Income Trust.

The change is effective for all Long-Term Care and Assisted Living Facility applications made from August 15, 2005 forward.  MS Policy 3336.9 #2 has been revised to incorporate this change.

Changes to policy include:

·        Updating the OPPD Slot Number in MS 3336.8 #7;

·        Deleting a paragraph at MS 3336.9 #1 about trusts established in another state being invalid; (These trusts should be sent to OCC for review like other income trusts as some out-of-state trusts are written to allow prorating between states.)

·        Deleting ACES information at 3336.9 #10 that is obsolete for ANSWER; and

·        Changing the reference to the $1700 divisor for transfer penalties at MS 3336.9 #11 to read “the current divisor” with reference to Appendix R.