On June 1, 2014, Indiana will change the way Indiana residents obtain Medicaid coverage in the age, blind or disabled categories. Currently, when Indiana residents apply for Medicaid coverage, they are subject to state-specific restrictive criteria. After June 1, 2014, Indiana residents will automatically be enrolled in Medicaid if the Federal Social Security Administration determines they are eligible for Supplemental Security Income. This transition will eliminate Indiana’s Medicaid Spend Down Program.
The State of Indiana believes that the transition will help current Indiana Medicaid recipients maintain eligibility and will result in members receiving more comprehensive Medicaid coverage after the transition is in place.
The State of Indiana believes that the state and federal savings from this transition will exceed $35,000,000 in 2015 and each following year. According to the State of Indiana, a total of 76,000 people use the Indiana Medicaid Spend Down Program.
Indiana has developed programs to address possible coverage gaps for spend down recipients to get ready for the transition.
Some Indiana residents who are applying for institutional or nursing home Medicaid or for home- and community-based services and have an income that is greater than the Medicaid eligibility limit will not be eligible unless their income, either part of their income or all of their income, goes into a Qualifying Income Trust (a “QIT” or a “Miller Trust”), so the income can be disregarded for the Medicaid eligibility determination. Indiana believes that approximately 3,000 Indiana residents will need to establish (or confirm that they have in existence) a QIT or a Miller Trust in order to maintain their Medicaid benefits.
Indiana’s Family and Social Services Administration has a list of frequently asked questions and other resources available on its website.
Should you have any questions, please contact Sean Fahey at 317.977.1472 or sfahey@wp.hallrender.com or your regular Hall Render attorney.
