DDD Eligibility And Medicaid Requirements
by
Herbert D. Hinkle, Esq.
Hinkle & Fingles, Attorneys at Law
2651 Main Street
Lawrenceville, New Jersey 08648
(609) 896-4200 or (215) 860-2100
It is no secret that the New Jersey Division of Developmental
Disabilities wants to do a better job when compared to other states in
drawing federal Medicaid funds. As part of a larger effort to rectify
this problem, DDD is now requiring that its clients apply for Medicaid
and related benefits.
Why is Medicaid important? Under a special Medicaid waiver program the
federal government will pay for 50% of the cost of community
residential services for qualified people. Thus, DDD can place twice
as many clients using Medicaid funds as it can by using state money
exclusively. The federal money available for this program is not
unlimited, and DDD is already using it in many cases, but if DDD can
make better use of it, more people can be served residentially.
The focus of DDD’s efforts is to ensure that clients (and their
families) do not deliberately make themselves Medicaid ineligible by
having resources in excess of $2,000.
How can clients become Medicaid eligible?
1. Clients, parents, and other family members should not place assets
in the name of the client in excess of $2,000.
2. If there are assets in excess of $2,000, and the value is modest,
spend them or reimburse the family for expenses already incurred.
3. If the assets are significant, consideration should be given to
using a special needs trust. If the trust holds assets which actually
belong to a client, the trust must provide for repayment to Medicaid
when the client dies.
4. Inheritance and lifetime gifts should be made to a special needs
trust and not the client. Because the client never owned these assets,
the repayment requirement mentioned in paragraph 3 is not required
here.
For a detailed explanation of the two types of special needs trusts,
see the author’s article “Estate Planning for a Child with Autism” in
the Spring\Summer 2003 issue of Outreach, available online at
www.cosac.org.
______
Herbert D.
Hinkle, his partner, Ira M. Fingles and their colleague, S. Paul
Prior, maintain a statewide
law practice with offices in Lawrenceville, Marlton, and Florham Park,
New Jersey, and Yardley, Pennsylvania. They lecture and write frequently
on topics of law, aging, disability and estate planning and are available
to speak to groups in New Jersey and Pennsylvania
at no charge.
Comments and suggestions
for future articles should be mailed to: Hinkle & Fingles, 2651 Main Street, Suite A, Lawrenceville, New Jersey 08648-1012.
Copyright 2004
Herbert D. Hinkle. All rights reserved.
