Justin, my sisters and I have been looking into nursing home care for our mother. Her dementia and mobility issues have progressed to a point where she needs more assistance than we can provide. She does not have the resources to pay for the facility for long, but she makes almost $2,400 per month. We heard that because she makes so much she will not qualify for Medicaid. Please tell us there is something we can do! – Denise
Denise, I am sorry to hear about your mother’s worsening health, but I am happy to say there is hope for getting her on Medicaid.
It is true that Arkansas is one of the few income-cap states in America, meaning that if a Medicaid applicant makes more than about $2,200 in income, they are disqualified for Medicaid. This is an outdated rule that has been abolished by most states because it works an undue hardship on many people in need. Almost all nursing homes cost more than $5,000 per month, while the income cap for Medicaid is less than half that. The difference between these two figures leaves a lot of people in a tough spot.
Realizing this issue, Congress addressed the problem by establishing something referred to as a Miller Trust through which an applicant can funnel their income to bypass the income limit. When a Medicaid applicant properly uses the Miller Trust, she is automatically income-qualified no matter how high her income is.