(MAY 2013) -- Over the past few weeks and months, NYSFDA has received an increasing number of calls from member funeral firms being given inconsistent guidance from Connecticut Department of Social Services (DSS) regional offices regarding how a New York-based funeral home should set up a preneed account for a Medicaid applicant or recipient who resides in Connecticut.  Due to the resulting confusion, NYSFDA sought to secure a definitive clarification from a senior Connecticut DSS official in Hartford. He just provided us with a current and reliable interpretation of CT law regarding these accounts.  The interpretation is summarized as follows:

• A New York funeral home may set up one irrevocable account for a CT resident applying for or receiving Medicaid.
• Just like New York State, the irrevocable account has no dollar amount limitations (“cap”).  (As such, a separate revocable account for burial plot items is not necessary.)
• The funds in the irrevocable trust account will be excluded as an asset when determining Medicaid eligibility.

In addition, our recommendation is that any existing accounts of this type should be maintained as is unless you are contacted specifically by a CT or county DSS official providing detailed instructions.
We hope this information serves to remove the unnecessary confusion on this issue that our members were receiving on this matter. To that end, we are appreciative of the kind and expedient assistance provided to us by CT DSS in Hartford in making this important clarification.

If you have any questions regarding this issue, please do not hesitate to contact Colleen Connelly or Randy McCullough at 800-291-2629.