AboutJohn Pedit Expertise Am an expert on Medicare, Medicare HMOs, and Medicare supplemental insurance. Also have extensive knowledge of Medicare especially in Mich. Have knowledge of COBRA and the Portability Act
Experience
Past/Present clients Council about 300 persons yearly and do many presentations on Medicare
Question In Missouri, my 26 year old son is diagnosed with diabetes and an extreme case of depression, has no income, no school and still lives with me. He's been accepted to medicaid for the past year, but now he has inherited a fairly large sum in the form of a $30,000+ check. Now we have to make him a bank account, and with that registered income I fear he'll be taken off medicaid... which will drain his inheritance in less than a couple years, making it rather pointless really. Do I [hopefully] have this all wrong, and is there any way of avoiding the situation as it is now?
Answer Hi Marda
Sorry, but you just about have it all figured out. Medicare regulations vary from State to State. However a lump sum income is usually counted as income for the month received, which would cause him to lose Medicaid for that month. What is left would become an accountable asset starting the following month making him ineligible for Medicaid until it was spent down to the allowable asset limit,
So that is about where you are now. Usually you have more freedom of options if it is put in a separate account and not co-mingled with other money. He can use that money to buy non accountable assets. Hope this helps you,
