FRANKFORT, Ky. (Sept. 12, 2003) - The Department for Medicaid Services announced new timeframes for people who are considering establishing Qualifying Income Trusts so they may keep their Medicaid coverage.

        These timeframes affect approximately 1,200 people who reside in nursing homes or who receive community services that are alternatives to nursing facility care who have gross income over $1,656 a month. The trust is for the excess income and allows these people to keep Medicaid coverage.

        The department had initially asked individuals who elected to establish the trusts to have them completed by Sept. 19.

        Under the new timeframes, people who are unable to have the trust document completed by Sept. 19 may file a letter of intent with their local Community Based Services office explaining the reason they couldn't meet the initial deadline by Sept. 19.   If a letter of intent is submitted by Sept. 19, the trust will need to filed with the local Community Based Services office by Oct. 22.

By sending in the trust by Sept. 19, or a letter of intent by Sept. 19 and the trust by Oct. 22, the individual's Medicaid coverage will continue.

        The trust requirement does not apply to everyone on Medicaid in nursing homes or who receive community services - just those whose income is over $1,656 a month. The department sent notices in August to those who are affected.

        The trusts are part of the department's cost-containment initiatives developed as a result of the shortfall in the Medicaid budget. The department has been working with Kentucky Legal Aid, the Kentucky Bar Association, and provider groups to seek assistance for those who need help with the trusts.

Individuals with questions may call Medicaid's member services number toll-free at 1-800-635-2570. (For the hearing impaired, call 1-800-775-0296. If Spanish language services are needed, call 1-800-662-5397). Nursing homes and community services providers can determine which of their residents or clients are required to submit trusts to maintain their Medicaid eligibility by accessing Medicaid's Internet Information Processing System at the Medicaid website.

        For more information about the trusts, go to the Department for Medicaid Services website at: http://chs.ky.gov/dms/

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