Medical and State Assistance

These guidelines regarding state medical assistance can be confusing during the best of times. In an effort to answer your concerns regarding the effects of preplanning and pre-funding funerals for someone on long-term care and state medical assistance, we have contacted the State of Connecticut to confirm the guidelines currently in effect. The purpose of this letter is to clarify these guidelines, and hopefully, to alleviate some of the stress that accompanies these difficult times.

The Department that sets these guidelines is the Connecticut Department of Social Services. Not all guidelines are the same; they vary from state to state and region to region. Medical assistance officials recognize that individuals need certain basic property and assets, such as a home and a car, or special purposes. As a result, they have excluded certain items from being considered as resources. In other words, the value of certain items is not counted when the assets are totaled. In effect, this means that individuals may retain $1,600.00 in total assets (Additional rules apply for married couples), PLUS any items in the exclusion category. All of the following resources involved in Advanced Funeral Planning contracts are excluded from consideration as assets when evaluated for long-term care purposes.

1. PRE-PAID FUNERAL CONTRACT:
A pre-paid irrevocable (Non-refundable) funeral contract(Limited to $5,400.00 with a Connecticut funeral home). These funds would not be counted as an asset. Currently, and in addition to the above, burial items, such as a casket and a vault, may also be excluded.

2. BURIAL PLOTS:
Either an existing burial plot or the reasonable cost of one that needs to be purchased.

3. LIFE INSURANCE:
Any amount that has no cash surrender value, such as Term Insurance or Insurance offered by the funeral home for such a purpose (See Funeral Director for specifics). If a life insurance policy has a present cash value, the cash value counts towards the $1,600.00 in total assets. However; if the face value of all of your policies is less than $1,500.00, their cash value does not count.

THE TRANSFER OF ASSETS:
The Dept. of Social Services can "Look Back" over the past thirty-six (36) months to see whether you intentionally gave away money or property to become eligible. They can also ask about certain transfers your spouse may have made, even though your spouse doesn't need Medicaid. (Be sure to check with an attorney who is well-versed in Medicaid law) These regulations are very important. When you make the proper arrangements well in advance, (funeral arrangements, home transfer, asset protection, etc.), you will find the processes much easier at a time of need. The team at the Department of Social Services can help to answer any questions that you may have about prepaid funerals and the regulations pertaining to them. They can be reached at 1-800-609-5627. The Medical Assistance Regulation governing this subject is Public Act 97-2.

Disclaimer: *Researched and Compiled by Advanced Funeral Planning. These guidelines apply to the State of Connecticut only and are subject to change. Please check with your Department of Social Services for the regulations that apply to your state.