by bjroxas » Mon Jan 17, 2011 04:48 pm
Does medicaid in Illinois have the right to a whole life insurance policy inwhich I am beneficiary? Policy was never listed at time of medicaid application. The cash value did exceed the $1500 My aunt died last week. What should I do..Thanks
Posted: Mon Jan 17, 2011 09:30 pm Post Subject:
Medicaid does not have a claim against the insurance proceeds directly. Medicaid does have the right to reevaluate the payments it made on behalf of one of its "beneficiaries" (the now deceased person), and perhaps disallow their eligibility, which could bring some or all of the claims back against the decedent's estate.
Excess cash value is "counted" as an asset of the Medicaid beneficiary, and factors into the spend down test.
What should you do? File the death claim and collect the money. There is no claim the state can bring against it, because it is yours not someone else's. What happens with the decedent's estate is a very different matter, and the state will figure that out on its own.
Posted: Mon Jan 17, 2011 09:43 pm Post Subject: WHOLELIFE/MEDICAID
THANK YOU FOR YOUR MESSAGE. MY AUNT HAD NOTHING. HER HOUSE AND CASH WENT TO THE NURSING HOME ALREADY FOR PAYMENT FOR SERVICE. THE ONLY THING(S) SHE HAD WAS A PREPAID FUNERAL, HER CLOTHES IN THE NURSING HOME AND THAT INSURANCE POLICY THAT I THINK WAS NOT LISTED BECAUSE THE CASH VALUE EXCEEDED THE GUIDELINE FOR GETTING ASSISTANCE FROM MEDICAID. THIS IS ALL TAKING PLACE IN ILLINOIS..DUPAGE COUNYT. DO YOU HAVE ANYMORE THOUGHTS ON THIS SUBJECT. NOT LISTING THAT POLICY AT APPLICATION TIME IS THAT CONSIDERED FRAUD AND MEDICAID COULD DEMAND THE RELATIVE WHO CHECKED HER INTO THE NURSING HOME TO PAY THAT MEDICAID DEBT? THANK YOU
Posted: Mon Jan 17, 2011 10:33 pm Post Subject:
NOT LISTING THAT POLICY AT APPLICATION TIME IS THAT CONSIDERED FRAUD AND MEDICAID COULD DEMAND THE RELATIVE WHO CHECKED HER INTO THE NURSING HOME TO PAY THAT MEDICAID DEBT?
Unless there was a deliberate attempt to conceal the asset from Medicaid (how much cash value, roughly are we talking about?), there is no fraud. If it was an error on someone's part (didn't know it existed until the death occurred, for example), then it could still be a problem for the decedent's estate.
Could it end up becoming a claim against the decedent's personal representative? Highly doubtful, unless there was something unlawful going on.
Posted: Tue Jan 18, 2011 02:16 pm Post Subject: cash value
The cash value of that policy was around $5000.00 which put her over the top with that $1500.00 guideline at the time of her application. I am 100% sure of that figure. I think this is what happened.Either it was overlooked or I also heard from my daughter when she happened to be there when the application was going on, my aunt mentioned the policy but could not furnish the name of who the insurance company was. Like I said she was very old and sick. Does
Medicaid have ways of finding out who is the insurance company? Then my thoughts are. if they could find out info on that policy they would see she was well over the $1500.00 guideline and reject her application. If they do not know this policy exists, when cashed in, her death certificate will have her social sec. number on it. Will that raise a red flag with Medicaid and they will contact me for the funds? Do insurance companies submit paid claims information to our govenment where Medicaid would be alerted via her ss number that someone came forth as beneficiary to make a claim?
Posted: Tue Jan 18, 2011 08:14 pm Post Subject:
OK . . . if the excess was about $3500, the most that might do is increase your aunt's "share of cost" in one or two months of her Medicaid-covered services by the same amount. Talk to someone at the Medicaid agency and ask if they would be willing to waive any repayment, since the amount is relatively benign and there are no other assets.
her death certificate will have her social sec. number on it.
Has nothing to do with an insurance claim. The state is still not entitled to the life insurance proceeds. Their only claim is for Medicaid dollars expended. If she had properly disclosed the cash value, the monthly spend down test is what would have been affected. It should not be a big issue.
Do insurance companies submit paid claims information to our govenment where Medicaid would be alerted via her ss number that someone came forth as beneficiary to make a claim?
Only to the extent that any interest is paid with a death benefit will the IRS be notified by the insurance company. It is a "1099-INT" reportable event. Medicare is unlikely to be involved in any way, because the only Social Security number involved, if any, will be that of the beneficiary, not the insured.
Rest easy. Just make the disclosure to the Medicaid agency and see what happens. No one connected with your aunt or her estate will be personally liable for any money owed.
Posted: Fri Jul 15, 2011 02:31 pm Post Subject: life insurance
Mom is in a nursing home and is about to run out of money. I am beneficiary on a $6,000 insurance policy.Do I have to cash this in and give it to the nursing home
Posted: Fri Jul 15, 2011 05:52 pm Post Subject:
Do I have to cash this in and give it to the nursing home
If you are not the owner of the policy, you have no right to do anything other than collect the death benefit after your mother dies.
The nursing home has no power to force the cancellation of a life insurance policy to pay for services. Medicaid may count a portion of the life insurance cash value as a "spendable asset" in order to qualify for benefits.
Posted: Fri May 03, 2013 02:52 am Post Subject: whole life insurance policy
My mom has a whole life policy for $8000.00 pay out when she passes. She is in a nursing home. She will not be a full time resident for 2 months. Can medicaid take her policy that is left to me? Should we make me owner of the policy?
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