April 18, 2008
Did you know that German Reparation payments are excluded for Medicaid
purposes? These are compensation payments to certain holocaust
survivors under the Republic of Germany's federal law for Nazi
persecution. The payments do not count as income and are not part
of the budget for determining Patient Liability Cost Share.
Moreover, unspent German Reparation payments are excluded as
resources.
What this means is that certain holocaust survivors who receive these
payments will have more than the usual $50 per month spending money
when they go on Medicaid. They will have their entire German
payment to spend on a private room, private duty sitters or other
luxuries which Medicaid does not cover. If they don't spend their
German check each month, they can save it without having a resource
problem as long as they can separately account for the money.
I have had several clients receiving German Reparation payments over
the years. If you know someone in this category, advise them to
set up separate accounts for these payments so that when they apply for
Medicaid, the segregated account will be excluded from the resource
test.
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