Qualified Income Trust
What is a Qualified Income Trust?
If your income is over the limit to qualify for Medicaid long-term care services (including nursing home care), a Qualified Income Trust (QIT) allows you to become eligible by placing income into an account each month that you need Medicaid. The QIT involves a written agreement, setting up a special account and making deposits into the account.
Who needs a Qualified Income Trust?
You need a QIT if your income before any deductions (such as taxes, Medicare or health insurance premiums) is over the limit (currently $2,350/month) to qualify for the Institutional Care Program (ICP), Institutional Hospice, Program of All-Inclusive Care for the Elderly (PACE) or the Home and Community Based Services (HCBS) waivers.
How does the Qualified Income Trust Work?
After setting up the account, you must make deposits into the QIT account every month for as long as you need Medicaid. This means you may need to make deposits before a Medicaid application is approved if you need Medicaid coverage.
You cannot make deposits for a past or future month. Any income you receive back from the trust to you will be counted as income to you.
If you fail to make a deposit in any given month, or to deposit enough income you will be ineligible for Medicaid payment of long- term care services for the month.
As long you deposit income into the QIT account in the month it is received, it will not be counted when we determine if you are eligible for Medicaid for that month.
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