Increase Spouse’s Monthly Income to Protect Family Income & Life Savings

When one spouse enters a nursing home, Medicaid allows the spouse living in the marital home to have a minimum monthly income to live on.  If the monthly income is below that amount, then Medicaid allows a portion or all of the income of the spouse living in the nursing home to go to the spouse living in the marital home.  If that amount still does not equal the Medicaid monthly minimum income, then Medicaid will allow the married couple to take excess resources to purchase an annuity which will turn the excess resources into a fixed monthly income to bring the income of the spouse living at home up to Medicaid’s minimum monthly amount.

Below I provide an example of both increasing income and converting excess resources into an annuity to produce additional income for the spouse living in the marital home to the Medicaid minimum monthly amount.

Increase Income to Spouse at Home—let’s assume the Medicaid’s minimum monthly income for the spouse living in the marital home is $2,000.  But in this case, the Spouse living in the marital home’s monthly income is only $300.  As you can see, the monthly income is $1,700 below Medicaid’s minimum monthly amount of $2,000 ($2,000 – $300 = $1,700).

Because the income is below Medicaid’s minimum monthly amount, Medicaid allows you to take a portion or all income of spouse living in the nursing home and give it to the other spouse to increase that spouse’s income up to Medicaid’s monthly minimum amount of $2,000.

Let’s also assume that the monthly income of spouse living in the nursing home is $1,100.  Currently, that income is being paid to the nursing home.  However, because the income of the spouse living in the marital home is only $300, below Medicaid’s minimum monthly amount of $2,000, Medicaid will allow a portion or all of the $1,100, which is currently being paid to the nursing home, to go to the spouse living in the marital home.  In this example, it will all of the $1,100 because if you combine the two incomes, it’s only $1,400 ($1,100 + $300 = $1,400), still below the Medicaid’s minimum monthly amount of $2,000.

Use Extra Resources to Increase Spouse’s Income—If, after giving all of the income of the spouse living in the nursing home to the other spouse, and if it still does not equal Medicaid’s minimum monthly amount, then Medicaid allows you to take excess resources, that may otherwise prevent you from qualifying for Medicaid, and use it to purchase an annuity which will turn the excess resource into a fixed monthly income for the spouse living at home.

Let’s continue with the example.  Even though we took all of the couple’s income and gave it to the spouse living in the marital home, the monthly income is only $1,400, still under Medicaid’s minimum monthly income of $2,000. Let’s also assume that couple has $20,000 in excess recourses, which is preventing them from qualifying for Medicaid.  Medicaid will allow the couple to use the excess $20,000 to purchase an annuity that will generate a monthly fix income to add to $1,400 to bringing it up to the Medicaid minimum monthly amount of $2,000.

This process is not automatic.  You have to appeal to Medicaid to increase income and resources for the spouse living in the marital home.  If you don’t make the appeal, it won’t happen.  Therefore, under the right circumstances, if you take advantage of the Medicaid rule that permits the spouse living in the marital home to have a minimum monthly income, you can take income and what you own that could otherwise go to the nursing home and give it to the spouse living in the Marital home.

Want Peace of Mind and a Complete Evaluation of Your Case? 

Call (610) 347-5035 NOW or Click HERE to Schedule a Consultation with Chester County Pennsylvania Nursing Home & Elder Law Attorney, Michaelangelo L. Dippolito.  Click HERE to see the attorney’s background.

Not Ready to Speak to an Attorney Yet?  No Problem.

Get this FREE Book and Consumer Protection Guide, Paying for Nursing Home Care in Pennsylvania, A Consumer Protection Guide on What You Need to Know to Protect Your Legal Rights.  Here’s Some of What’s in the FREE Book and Consumer Protection Guide:

• What’s it Cost & Who’s Gonna Pay?
• 10 Moves You Can Make to Qualify for Medicaid & Protect Your Life Savings
• Critical 5 Step Process to Your Medicaid Claim for Nursing Home Care
• What You Need to Know About Lawyer Fees
• Arming Yourself with Knowledge is the First Step to a New Beginning

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