Medicaid, funded by the state and federal governments, is a health insurance plan designed to serve low-income families and people in critical need of care, typically in a nursing home or with a home care specialist. If you require medical care but have a level of income or assets that disqualify you from coverage, you might still qualify by spending down your assets to a point that you are eligible for long-term care. However, only approved expenses are permitted. They include paying off legitimate debts—even prepayment of loans—home improvement expenses to an exempt home, and funeral arrangements. Here is a brief guide to what funeral and burial expenses are permitted in Connecticut to let you spend down assets and qualify for Medicaid.
How to Spend Down Assets With Funeral Arrangements in Connecticut
Since Medicaid is operated and funded jointly by the federal and state governments, each state has its own specifications for what “spend down” expenses it permits for eligibility. In Connecticut, you can set aside up to $5,400 to pay for an irrevocable funeral contract which, because it cannot be reversed, is not considered an asset. Connecticut also puts no limit on the amount of a burial trust for the cost of the casket, grave lining, and other expenses. Each person is allowed a single cemetery plot—up to two for a married couple, even if only one of them seeks Medicaid eligibility. Because requirements change over time and differ between states, you should consult legal guidance before enacting any spend-down plan.
To qualify for Medicaid, it's important to spend down your assets only on approved expenses and in allowable amounts. To schedule prepaid funeral arrangements, contact Belmont Funeral Home in Colchester, CT. They've been serving New London County since 1954, and their compassionate staff will help you plan a service, choose the casket or urn, and select a burial location. Visit their website to view hours and directions or call (860) 537-2900 to schedule a consultation.