What happens to income when someone leaves a nursing home?

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Q. My son is in a nursing home and wants to get out. He’s on Medicaid. What happens to disability income if he comes out? What happens to his pension income? He is now 65.
— Trying to help

A. There is a lot to consider here.

You and your son should make sure you understand the rules.

When an individual is receiving Medicaid in a nursing home, the Medicaid recipient’s income must be paid to the nursing home as the monthly cost share after allowable deductions such as a $50 personal needs allowance and third-party health insurance premiums, said Shirley Whitenack, an estate planning attorney with Schenck, Price, Smith & King in Florham Park.

“If the Medicaid recipient wants to receive Medicaid benefits for home and community based Medicaid after he or she leaves the nursing home a service package will be developed and the budget will include the Medicaid recipient’s income,” she said.

Before you make a move, we recommend you discuss all the details of his situation with someone who can look at the details and make sure everything is considered.

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This story was originally published on April 4, 2023.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.