Medicaid has rigid rules about allowable income levels. Similar to deductibles, anything above those amounts – minus the cost of the health insurance premiums – must first be spent on medical bills before the person can receive Medicaid benefits. You can also choose to pay your excess income directly to Medicaid to meet your monthly surplus, and therefore activate your Medicaid coverage. But practically speaking, living on the monthly income which the senior is allowed to keep is nearly impossible.

That is where the Pooled Income Trust comes in. Each month, an individual with “excess income” can deposit his or her excess income into the trust, which must be operated by a nonprofit organization. The trust will utilize these deposits to pay the individual’s living expenses such as rent, mortgage, utilities, groceries, and so on. A Pooled Income Trust is a unique tool which allows you to shelter your excess income instead of giving it directly to Medicaid each month.

With a private, personal consultation, Eldercare Allegiance, LLC, can help you determine the best way to deal with your “excess” income.