Excess Income Changes

December 21, 2016

For those who divert excess income to pooled trusts (to qualify for Medicaid programs with income limits), major changes are being unrolled. The Department of Social Services has now implemented an applied income requirement for all income over the $1,980 personal needs allowance. This means that all diverted income, that previously could be used to help with monthly expenses, must be turned over as applied income to the State. Certain medical expense deductions are allowed, but not any distributions for housing costs, etc. The State has started the policy in the greater Middletown area. Starting in January, it will phase in the Bridgeport, Stamford and Torrington areas followed by State-wide implementation shortly thereafter. This devastating change will have major impact on existing and future clients.  CTNAELA has the Public Policy Committee actively contesting these changes. More to come…