Disabled Can Lose Medicaid When Using Trusts, 8th Circ. Rules

Law360, New York (April 16, 2012, 5:15 PM EDT) -- Disabled individuals older than 65 who put money in pooled trusts can lose Medicaid eligibility, the Eighth Circuit ruled Monday in a case where North Dakota demanded Medicaid reimbursement from administrators of a special-needs trust.

The case centered on North Dakota resident Allen H. Kemmet, a nursing-home resident who placed more than $50,000 into a special-needs trust and subsequently applied for Medicaid.

Assets held in a trust typically count as financial resources when determining Medicaid eligibility, but Congress two decades ago created an exemption for disabled...
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