28 Dec Proposed Texas Rule Excludes Tuition Savings Programs from being a Countable Resource for Medicaid Eligibility
Although irrevocable 529s (for college education) and UTMAs (accounts for minors) are not considered a resource for certain Texas Medicaid programs, the Texas Health and Human Services Commission (which governs Medicaid eligibility in Texas) currently counts resources and income in prepaid tuition programs and higher education savings plans.
The proposed rule would change the policy for Medicaid eligibility so that funds used to establish programs or payments from or interest on a tuition savings program would be excluded from resources and income calculations in determining financial eligibility for Texas Medicaid programs provided that the tuition program was established before the beneficiary’s 21st birthday by the beneficiary’s parent, stepparent, spouse, grandparent, brother, sister, uncle or aunt. However, if the tuition savings program is cancelled or if there is a withdrawal for a purpose other than paying qualified educational expenses of the beneficiary, then it would no longer be considered exempt. This will even be applicable to the Medicaid Buy-in program which gives Medicaid help to disabled people who work regardless of age and Medicare Savings Programs such as the Qualified Medicare Beneficiary program (QMB), the Specified Low Income Medicare Beneficiary program (SLMB), the Qualifying Individual program (QI) and the Qualified Disabled and Working Individual program (QDWI) – which are programs for people who receive Medicare and need help paying for Medicare premiums, co-insurance and deductibles.
For more information on Texas Medicaid eligibility rules, please contact our Dallas office at (214) 720.0102.