NYC MEDICAID FACTS ALERT

May 2004

Supplemental Needs Trusts Excluded from MA Eligibility Budgeting

As a result of a recent Fair Hearing decision, all income deposited into a "pooled trust," without restriction to dollar amount or frequency of deposit, is to be exempted. when determining Medicaid eligibility. A "pooled trust" is a Supplemental Needs Trust (SNT) that hasits assets pooled with the assets of others, but is managed as a separate account for the person for whose benefit the trust was established. SNTs are trusts established for the benefit of an individual of any age with a severe and/or chronic or persistent impairment.

However, transfers of income or resources to any SNT (pooled or otherwise) of an institutionalized consumer age 65 or older are subject to potential transfer penalties.

All cases with trusts of any kind are forwarded to the HRA, Office of Legal Affairs-Litigation Division prior to an eligibility determination' for review and recommendation.

NYC Medicaid Alerts are a Periodic service of the NYC Human Resources Administration

Medical Assistance Programs
Office of Eligibility
Information Services
330 West 34th Street
New York, NY 10001

Verna Eggleston,
Administrator/Commissioner

Iris R. Jimenez–Hernandez,
Executive Deputy Commissioner

Maria Ortiz-Quezada,
Eligibility Information Services