Medicaid Blog
Three Rivers - Medicaid Planning and Regulation Law Blog

Prearranged Funerals

Posted December 2, 2018

You can prearrange your funeral and still get Medicaid. How much money you can protect, and for whom, depends on which arrangements you choose. Someone in the funeral or insurance business may be able to give you more information. These are four commonly used arrangements:

  • Prepaid funeral contract - Irrevocable funeral contracts are not counted if the contract is for your expenses and the amount of the contract is less than the funeral maximum in BAM 805. You will need to contact your DHS caseworker since the allowable amount of the contract changes each year.
  • Life insurance - Michigan law allows you to assign money from your life insurance for your funeral costs. There is a limit to the amount you can assign. You can usually do this by transferring ownership to a trust when you buy the insurance. If you have a spouse, you may also protect funds to pay their funeral costs.
  • Buy burial space items - You can buy items for burial. Examples are a casket, a burial plot, a vault, a headstone, and opening and closing the gravesite. These items do not count as assets when you buy them for yourself, your spouse, and are limited for members of your immediate family.
  • Designate a burial fund - A burial fund pays for funeral costs not covered by allowable burial space items. A separate savings account for a burial fund for you or your spouse does not count as an asset. The limit is $1,500. The limit includes: The face value of life insurance that was not counted. The amount paid for an irrevocable funeral contract. The amount of insurance for burial costs


Applying for Medicaid Coverage in a Nursing Facility What should I do first?

Posted November 19, 2018

You will need to work through your local Department of Human Services (DHS) office. You may apply for Medicaid at any time. To apply for Medicaid, contact the DHS office in your area. Ask for a Medicaid application (DHS-1171). You can pick it up, your local DHS office can mail it to you or you can download it online at: www.michiqan.qov/dhs.

You may have someone help you fill out the form. Tell DHS if you need help. Bring or mail the signed and dated form to your local DHS office. If you have past medical bills, your Medicaid coverage may begin by going back up to three months before the month you apply. You should apply for past coverage even if you have other insurance that might cover the cost. You will need to fill out a separate form.

You may not need to apply for Medicaid now. But be sure to contact us if you have been, or think you will be, in a hospital or nursing facility for 30 continuous days. If you have a spouse, you must fill out an Asset Declaration form, DHS-4574-B. This will be used to help determine your eligibility


To Determine if You are Eligible for Medicaid:

Posted October 9, 2018

In order to determine if you or your spouse is eligible for Medicaid to pay for nursing home care DHS will ask you to verify:

  • Income and assets
  • Age
  • Medical expenses
  • Income of other dependents at home
  • Marital status
  • Medical insurance

This is a two-step process. First DHS determines whether you are eligible on the basis of your assets. This is called asset eligibility. If you are asset-eligible, then they review your income. If you have too many assets to qualify for Medicaid benefits, your application may be denied. In order to verify assets, DHS will ask you for:

  • proof of your income and assets. If you have a spouse, they will need proof of his or her income and assets, too.
  • if you are under age 65, they may need proof of your disability.
  • proof that you are a U.S. citizen.

The documents DHS will ask for include:

  • Bankbooks or statements, including joint accounts
  • Pension payment information
  • Social Security benefit information
  • Real estate value (other than your home)
  • Recent medical bills