Authority: IC
12-15-1-10;
IC
12-15-1-15;
IC
12-15-21-2
Affected: IC
12-13-7-3;
IC 12-15; IC 30-2-13
Sec. 3.
(a) Pursuant
to IC
12-15-2-17
and IC 30-2-13 and subject to subsection (c), if an applicant for or a
recipient of
Medicaid:
(1)
establishes one (1) irrevocable trust that has a value of not more than ten
thousand dollars ($10,000), exclusive of interest, and is established for the
sole purpose of providing money for the burial of the applicant or
recipient;
(2) enters into one (1)
irrevocable prepaid funeral agreement having a value of not more than ten
thousand dollars ($10,000); or
(3)
owns one (1) or more life insurance policies with a combined face value of not
more than ten thousand dollars ($10,000) and with respect to which provision is
made to pay not more than ten thousand dollars ($10,000) toward the applicant's
or recipient's funeral expenses;
the value of the trust, prepaid funeral agreement, or life
insurance policy may not be considered as a resource in determining the
applicant's or recipient's eligibility for Medicaid.
(b) Subject to subsection (c) and
(d) and IC
12-15-3-7,
if an applicant for or a member of Medicaid owns resources described in
subsection (a) and the total value of those resources is more than ten thousand
dollars ($10,000), the value of those resources in excess of the ten thousand
dollars ($10,000) shall be considered as a resource in determining the
applicant's or recipient's eligibility for Medicaid.
(c) Subject to subsection (d), if an
applicant for or a member of Medicaid establishes an irrevocable trust or
escrow under IC 30-2-13, the entire value of the trust or escrow may not be
considered as a resource in determining the applicant's or individual's
eligibility for Medicaid.
(d) In
order for a trust, an escrow, a life insurance policy, or a prepaid funeral
agreement to be exempt as a resource in determining an applicant's or a
recipient's eligibility for Medicaid under this rule, the applicant or
recipient must designate the office or the applicant's or recipient's estate to
receive any remaining amounts after delivery of all services and merchandise
under the contract as reimbursement for Medicaid assistance provided to the
applicant or recipient after fifty-five (55) years of age. The office may
receive funds under this subsection only to the extent permitted by
42
U.S.C.
1396p. The computation of remaining
amounts shall be made as of the date of delivery of services and merchandise
under the contract and must be the excess, if any, derived from:
(1) growth in principal;
(2) accumulation and reinvestment of
dividends;
(3) accumulation and
reinvestment of interest; and
(4)
accumulation and reinvestment of distributions;
on the applicant's or recipient's trust, escrow, life
insurance policy, or prepaid funeral agreement over and above the seller's
current retail price of all services, merchandise, and cash advance items set
forth in the applicant's or recipient's contract.
