Special Needs Trusts

How to Protect Clients who need a MSA and are Eligible for Medicaid and/or other Government Benefits

Beneficiaries who have dual eligibility for Medicare and Medicaid require coordinated efforts to satisfy the provisions of the Medicare Secondary Payor Act, while at the same time protecting the Beneficiary’s eligibility for Medicaid, or other government benefits.

In many instances, a Medicare Set-Aside Allocation (MSA) will be used to protect Medicare’s interests. However, the establishment of the MSA may jeopardize the beneficiary’s other government benefits such as Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), and Medicaid. A Self- Administered MSA is a countable resource limit and in the majority of cases will exceed the allowable resource limit of $2,000 for an individual and $3,000 for a couple.

The best way to protect the Beneficiary’s other benefits is to create a Special Needs Trust and then situate the MSA Account in the Special Needs Trust. The MSA Account is then not a countable resource. Plaintiff Allocations, LLC works with Special Needs Trust Administration Service Providers to ensure that our clients protect their future eligibility for both Medicare and Medicaid.