Supplemental Health Insurance

I want to talk just a minute about the supplemental health insurance of the applicant in a Medicaid context. 

If we have an applicant that is applying for Medicaid, that individual is going to be allowed to keep from his or her income, enough money to pay for the supplemental health insurance of that individual.  Now why would we do that? 

Well the reason that the State allows it is because the State wants to be a payer of last resort, and the State wants you to continue any of your health insurance premiums that are occurring so that they know they are not going to have to be first in line to pay for the health care insurance, so they will allow the applicant to use the applicant’s money to pay for the supplemental health insurance of the individual who is in the nursing home.  

This also applies in a married context that we can still pay for the Institutionalized Spouse’s health care insurance.   Now, notice I said the health insurance of the Institutionalized Spouse can be paid from the income of the Institutionalized Spouse.   So, you can’t take that income from the I.S. and pay the community spouse’s health insurance.  But we can pay for the applicant’s health care insurance premiums and will continue that supplemental health insurance because we want to make sure that continues through the Medicaid process. 

We hope this helped, talking a little bit about why we can continue to use the applicant’s health care insurance to pay for the supplemental health insurance. If you have any questions about this topic or any other estate planning or asset protection planning when it comes to your family, feel free to contact us by clicking here.  



jeffrey bellomo

Jeffrey R. Bellomo, Esquire is a Certified Elder Law Attorney by the National Elder Law Foundation under authorization of the Pennsylvania Supreme Court. As the owner of Bellomo & Associates, LLC he advises families about the legal challenges facing them today. He counsels clients and provides solutions on: Asset Protection, Special Needs Trusts, Wills, Trust Design, Guardianships, Medicaid and Estate Planning & Administration. His mission is to provide professional caring service to all his clients.

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