Different kinds of healthcare programs exist to provide individuals with a healthcare plan that suits their needs. One type of program is referred to as Medicaid, which is a subsidized healthcare program for low-income individuals or families or those who have or are immediately related to those who have disabilities. However, not everyone who is categorized as low-income is eligible to obtain Medicaid. There is a standard or criteria that must be met before a person is given the opportunity to avail of the program. Thus, certain means have been created in order to help people qualify for the Medicaid program. This refers to the Medicaid trust.
A Medicaid trust is built for the sole purpose of helping a person qualify for Medicaid. It is a legal and financial means of obtaining Medicaid that renders it unnecessary to consider the assets of the person in terms of reviewing the person’s application. The trust is created by a person or entity in order to give another person or entity control and possession over the assets owned by the person who wishes to apply for Medicaid coverage.
For example, a person may wish to seek care and boarding at a nursing or retirement home. This can be expensive, and the person may be unable to pay for it. Thus, Medicaid can provide for the expenses for a certain period of time. It is expected that a person who has assets must use those assets in order to help pay for the nursing or retirement home. However, some may wish to keep such assets. Thus, a Medicaid trust is created in order for such people to place their assets under the title and control of another.