A&A and Medicaid

Discussion in 'General Discussion' started by hjw35, Jun 28, 2016.

  1. hjw35

    hjw35 Newbie

    I greatly appreciate the wonderful work you do on this site and believe I owe our success to you. I followed the advice given here and applied for A & A in November 2015. We were approved and started receiving payments in April 2016. We sent our incompentency notice response in late March – have not yet had a scheduled appointment for fiduciary approval.

    My sister’s illness is progressing much faster than we expected. She had to be moved to skilled nursing much earlier than we expected. Even with social security and A&A she is running through her savings at an alarming rate. We expect to have to apply for Medicaid in August of this year. In KY because she gave some gifts to her daughters in 2013 she will have a penalty period of at least 6 months that she can not receive Medicaid even after she qualifies from assets and income. The family will have to make up the difference.

    From this site I know that her A&A payments will drop to $90 when she receives Medicaid. Here are my questions:

    Does A&A payments drop when we apply for Medicaid? Or do the payments drop when we actually start receiving Medicaid? Is it our responsibility to inform the VA or does Medicaid do it?

    I have some concern about the fiduciary process. Medicaid requires assets of less than $2000. The back pay from A&A will be more than $2000. If we determine that a larger check is a problem, can we eliminate this “back pay”?

    Thank you.
     
  2. Kaylin

    Kaylin Hero Member Staff Member

    Thank you so much for the kind words. It is wonderful to hear that VeteranAid helped you in your application process for your sister.

    As for your questions, the payments will drop when she starts receiving Medicaid and you need to inform the VA immediately when this starts to happen so that they can reduce the payments. You would use Statement in Support of Claim form 21-4138 to let them know.

    That is an interesting question as I have never had someone ask if they could eliminate the back pay. Once the fiduciary process goes through and she is approved for that payment, no matter what it will show up in her bank statements and be on her records. I think you can cancel the fiduciary process if you no longer wish to receive that back money. Let me do some research as well, and I will see if I can get you a better answer.
     
  3. Kaylin

    Kaylin Hero Member Staff Member

    I found out some better advice to give you:

    When you receive the retroactive (back pay) money it would be best to spend it immediately. Even if it's prepaid funeral expenses. Also one thing to note is you don't get retroactive pay until you set up the fiduciary account. The actual checking account that Medicaid is looking at is not going to be fiduciary account, so that makes things a little easier.

    Another important thing to note if your sister goes on Medicaid and has the $90 A&A benefit, that $90 must be spent on personal care items only (like toiletry items, Depends, shampoo, etc.).
     
  4. hjw35

    hjw35 Newbie

    Again thank you so much for your work and prompt reply.
     
    Kaylin likes this.
  5. Kaylin

    Kaylin Hero Member Staff Member

    You're welcome!
     
  6. Kaylin

    Kaylin Hero Member Staff Member

    I do not think so, phoenixfarm. You should only owe back any money to the VA that you spend with the A&A benefit if you have it at the same time as Medicaid. The waiting period shouldn't count.
     
  7. rts

    rts Newbie

    Hi Kaylin - I just wanted to confirm something you said ... Does Medicaid (or Medi-Cal in California) NOT want to look at the VA fiduciary bank account statement when qualifying or re-qualifying for Medicaid? They ask for all bank accounts but does the VA fiduciary not count? (If so, is there any document confirming this from Medicaid that you know of?) Thank you!
     
    Kaylin likes this.
  8. Kaylin

    Kaylin Hero Member Staff Member

    I am slightly confused on this as well at the moment. I'm trying to do research on this topic but the best advice I can give you is to contact Medi-Cal directly and ask them what accounts need to be provided. Just to be safe. Here's a good website that has some info on veterans benefits when also on Medi-Cal: http://www.dhcs.ca.gov/services/medi-cal/Pages/VBE.aspx

    If you find out, can you please come back and let me know? I want to take note of the definitive answer this time.
     
  9. rts

    rts Newbie

    Hi Kaylin, thank you. I will definitely let you know once I find out.
     
    Kaylin likes this.
  10. davidbilly

    davidbilly Newbie

    Well,
    Well, I guess if they don't, they should look at VA fiduciary too. Let's see where it goes from here. Bookmarked this thread.
     
    Kaylin likes this.
  11. rts

    rts Newbie

    Hi Kaylin - I found out from Medi-Cal that they DO want to see the VA fiduciary account too (all bank accounts). The combined total of the accounts have to be under $2,000.00 to qualify or re-qualify for Medi-Cal.
     
    Kaylin likes this.
  12. Kaylin

    Kaylin Hero Member Staff Member

    Awesome, thank you so much for coming back to let me know.
     

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