7 AAC 100.604 - Recognized Medicaid trusts
(a) The following
three types of recognized Medicaid trusts are exceptions to the general trust
requirements in
7
AAC 100.602 for trusts:
(1) a qualifying income trust authorized
under
42 U.S.C.
1396 p(d)(4)(B) that meets the requirements
of 7 AAC 100.610;
(b) An
applicant or recipient must submit a recognized Medicaid trust document to the
department for review and approval before the department determines Medicaid
eligibility. To be approved by the department, in addition to meeting the
applicable requirements of 7 AAC 100.610, 7 AAC 100.612, or 7 AAC 100.614, the
trust document must
(1) cite the federal
statute listed in (a) of this section applicable to the type of
trust;
(2) state that at the time
the trust is funded, the applicant or recipient will be either under 65 years
of age or 65 years of age or older, as applicable;
(3) for a special needs or pooled trust,
identify the date the beneficiary was last determined or redetermined blind
under 7 AAC 40.140(a) or
disabled under
7
AAC 40.170(a);
(4) for a qualifying income trust, prohibit a
person from depositing into the trust anything other than the applicant's or
recipient's income;
(5) prohibit
the applicant or recipient from being a trustee or from having any ability,
access, or authority to manage or control the trust account;
(6) include a provision for reimbursing the
state in accordance with
7
AAC 100.608;
(7) identify the trustee, including a
co-trustee;
(8) identify procedures
for resignation of the trustee and for designating a successor trustee,
including a successor co-trustee; the procedure must require that, at least 30
days before the change, written notification of the change in trustee be sent
to the beneficiary, the beneficiary's authorized representative if applicable,
the department, and the court where the trust is registered; and
(9) identify on each page of the trust
document the person or organization that drafted the trust document.
(c) If the department approves a
recognized Medicaid trust, the trust and administration of the trust are
subject to review by the department, upon notice, to determine whether the
trust remains a valid trust for the purposes of meeting the requirements of a
recognized Medicaid trust. Upon request, the trustee shall provide the
department with the trust account number and the name of the financial
institution holding the trust account. The department will consider a trust to
be an invalid trust for the purposes of meeting the requirements of a
recognized Medicaid trust if
(1) the trust is
not registered with a court;
(2)
the trust account receives or uses the assets of another person, except as
provided under 7 AAC 100.614;
(3)
the applicant or recipient functions as the trustee or has any other ability,
access, or authority to manage or control the trust account;
(4) the trustee fails to provide the
department with all requested information necessary to identify the trust
account number and financial institution holding the trust account;
(5) the trustee fails to cooperate or
interferes with the department's ability to track and monitor the trust
account, including failing to disclose or account for any payment from or
deposit into the trust account;
(6)
the applicant or recipient has a cost-of-care liability under
7
AAC 100.550 -
7
AAC 100.579, but the trustee fails to make payments
toward the cost-of-care liability;
(7) the trustee fails to adhere to the terms
of the trust as written; or
(8) the
trustee fails to comply with the requirements of (e) or (f) of this
section.
(d) If the
department determines that a trust is invalid under (c) of this section, the
department will redetermine the applicant's or recipient's Medicaid
eligibility, applying the provisions of
7
AAC 100.600 and
7
AAC 100.602 to any existing trust.
(e) If a trustee decides, consistent with the
trustee's fiduciary duty, that use of a recognized Medicaid trust approved
under this section is no longer needed to maintain the beneficiary's Medicaid
eligibility, the trustee shall notify in writing the beneficiary, the
beneficiary's authorized representative if one exists, the department, and the
court where the trust is registered in writing no later than the first day of
the month immediately preceding the month a trust or trust account will no
longer be funded. The trustee shall keep the corpus of the trust intact until
the trust is terminated and the state is reimbursed in accordance with
7
AAC 100.608. If the trustee fails to notify the
department in accordance with this subsection, the department may find that the
trust is invalid under (c) of this section.
(f) If a trustee plans to resume use of an
unfunded recognized Medicaid trust, the trustee shall notify the department in
writing no later than the 15th day of the month immediately preceding the month
that use of the trust will resume. If the trustee fails to notify the
department in accordance with this subsection, the department may find the
applicant or recipient ineligible for Medicaid.
Notes
Authority:AS 47.05.010
AS 47.07.020
AS 47.07.040
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