What are They?
Medicare Savings Programs, also known as “MSP” Programs are specific programs that assist in paying premiums, deductibles, coinsurances, copayments, and prescription drug coverage costs. These programs may also assist in paying Medicare Part A which is hospital insurance and Medicare Part B which is medical insurance.
Medicare Savings Programs are Medicaid-administered programs for individuals who are on Medicare and have limited income and resources. Medicare Savings Programs are federally funded, but are administered by each state’s Medicaid office.
Entitlement Public Benefits vary from Needs-Based Public Benefits in that an individual’s resources and income are not considered for eligibility. These types of benefits are usually paid for with taxes from working or being employed. These types of benefits would not require a Special Needs Trust, and disbursements made from a Special Needs Trust would not interfere or impact the individual’s entitled benefits.
When establishing a Special Needs Trust, it is vital to know what government/public benefits an individual is receiving. It is extremely important for the trustee to know what benefits a beneficiary is receiving due to the sole responsibility of ensuring that the specific benefits being utilized are not jeopardized.
Medicare is an insurance program. Medical bills are paid from trust funds which those covered have paid into. It serves people over 65 primarily, whatever their income; and serves younger disabled people and dialysis patients. Patients pay part of costs through deductibles for hospital and other costs. Small monthly premiums are required for non-hospital coverage. Medicare is a federal program. It is basically the same everywhere in the United States and is run by the Centers for Medicare & Medicaid Services, an agency of the federal government.
William E. Lindahl, MBA, CLPF