Health Law & Business News

Disabled Couple Loses Part of Medicaid Long-Term Benefit

Dec. 3, 2018, 4:35 PM

An elderly disabled couple will have to tap into personal funds to pay for their long-term institutional care until Medicaid kicks in.

The Iowa Department of Human Services correctly delayed Susan and Edward Cox’s eligibility for long-term Medicaid benefits because of an asset transfer made after they turned 65, the Iowa Supreme Court said Nov. 30.

At age 65, the couple transferred most of the funds they received from a medical malpractice settlement into separate pooled special needs trusts. This type of trust pays for expenses like clothing, phone services, car maintenance, and taxes that aren’t covered by Medicaid.


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