2016 Elder Advocacy and Law Boot Camp PLATINUM SPONSOR

2016 Elder Advocacy and Law Boot Camp
PLATINUM SPONSOR
Timothy Summerford
General Manager for Pixley Funeral Homes
Timothy.Summerford@dignitymemorial.com
322 West University Drive
Rochester, MI 48307
www.dignitymemorial.com/pixley-funeral-home-rochester
248-651-9641
Medicaid requirements for
pre-paid funerals
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DID YOU KNOW?
Various burial and funeral arrangements
constitute excludable assets for Medicaid
Bridges Eligibility Manual (BEM) Item 400, at 44-51
Life Insurance-Funded Funeral Exclusion
• Individuals may purchase life insurance on themselves and assign ownership
of the insurance to a funeral director. When the individual dies, the funeral
director will receive the funds and use them to pay for the funeral services. If
such an arrangement is entered into and the insurance policy is irrevocably
assigned to the funeral director, the value of the insurance is excluded and
the transfer of the policy to the funeral director will not be treated as a
divestment provided the amount of insurance does not exceed the value of
services and goods purchased.
Prepaid Funeral Contract Exclusion
• Another method of prepaying for funeral services is to
simply pay for the services ahead of time by entering into
a contract with funeral director. These contracts can be
revocable or irrevocable.
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If the contract is REVOCABLE, the goods and services included
in the contract must be reviewed to determine whether they are
countable or excluded using the burial fund and burial space
exclusions.
BEM Item 400, at 50
• The Medicaid applicant may establish an IRREVOCABLE contract,
the value of which may not exceed $12,130 (starting June 1, 2014).
• Prepaid funeral contracts can no longer be used to achieve
retroactive eligibility for Medicaid benefits.
• For The Department of Health and Human Services (DHHS) to
certify a prepaid funeral contract as irrevocable, a Form DHS-8A
must be completed, certified, and approved.
BEM Item 400, at 50
Resources
www.Michigan.gov
Or
Timothy.Summerford@dignitymemorial.com
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Prepaid Funeral Contract- Spouse Exclusion
• If the applicant’s spouse seeks exclusion of his or her funeral expenses, the spouse may
either purchase a life insurance–funded funeral contract in accordance with §3.13 or may
apply for Medicaid simply for the purpose of certifying the funeral contract as irrevocable,
knowing that the application will be denied.
In other words, there will be times where you may apply for benefits for a spouse who is not in
a nursing home and not eligible, knowing that you will be denied, simply so that DHHS can
certify the funeral contracts.
Burial Fund Exclusion
• Up to $1,500 of a segregated and “clearly designated” fund may be set
aside to pay for burial expenses, and this fund, plus all the interest
earned on it, will be excluded.
BEM Item 400, at 44-47
Burial Space Exclusion
• An individual’s “burial space,” as defined by the BEM, is excluded as well as
burial space owned by the individual and intended for use by certain family
members- spouse; parent; siblings; children; and the spouses of parents,
siblings, and children. Burial space includes a grave site, crypt, mausoleum,
casket, urn, vault, headstone, costs of opening and closing a grave site, and
costs for maintaining the grave site.
BEM Item 400, at 47
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Timothy Summerford
General Manager for Pixley Funeral Homes
Timothy.Summerford@dignitymemorial.com
322 West University Drive
Rochester, MI 48307
www.dignitymemorial.com/pixley-funeral-home-rochester
248-651-9641
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