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The inevitable is coming upon us. My father has recently been in icu and is still there. He needs to be moved to a rehabilitation center for pt/ot therapy. His SS check is hurting his Medicaid applications. Because it is over the amount. Not to mention he receives a pension check from the union. I don't want my father to not be able to get the much needed care. I don't know if it is possible. But if so would like to look into cashing his pension out so that it does not hinder him more. I am his durable POA but have ran into what seems like an excessive amount of resistance to getting any where with trying to help my father get the care he needs. He wont be eligible for medicare until march '19 this scares me. We are already struggling with paying for his prescriptions and other necessities. Feeling stuck in the middle. He doesn't make enough with both checks to cover all of his necessities. But makes to much to be able to get the Medicaid he desperately needs.

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Contact the Union he belonged to. Often they are a great help.
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Does he have a wife who also depends on this income?
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Are his combined checks enough to pay for he kind of care he needs?  Nevermind. I see you covered this in your post, but I don't see a way to delete this!
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If it is a defined benefit pension it is unlikely to be able to cash it out like an insurance policy. Your father would have made selections at some point on when and how his pension would be distributed, survivor benefits etc.

Without knowing details of the pension plan it's impossible to advise. There is no standard UNION pension. There are many types of pension plans. His union may be able to get you in touch with the plan administrator.
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About "cashing" the pension...... does it really have a cash out value?
If it does, & if he did this then all the $ from it would need to be spent down. It's reported to IRS so state will know the $ & to the penny. Which could be a good thing as he can private pay for care & have more options as to where for facilities plus buy & pay for in full funeral & burial & other spend down for his needs.

But if it's the pension that's tied into a secondary health insurance policy (so they pay whatever Medicare doesn't), cashing it may not good as all those 20% or more copay & probably have to paid at a higher private pay rate. I'd try to speak with a union rep as to just what his union pension allows for.
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Miller trust AKA Qualified Income Trust - basically what it can do is
IF the income sources are qualified, then the Miller becomes the payee for his income (SS & pension) and in turn then "pays" dad whatever the maximum income allowed for your state for Medicaid. It needs to be set up by an atty as states vary as to just how the overage is dealt with.

Say dad gets $1300 a mo SS and pension is $1200. $2500 a mo.
Medicaid in your state has max income $ 2,065.00 so over $ 435.00. 
Miller gets paid both checks, then pays dad $ 2065 (Voila! He qualifies!) and $435 either gets paid to NH as a SOC (share of cost, a copay)or goes into a separate Trust which state is beneficiary of when he dies. Either way $2065 goes to the NH as his required SOC less a small personal needs allowance (varies from $35 -$115) with Medicaid then paying facility the rest of the cost of his stay.

His SS check will qualify for Miller. But the union pension may be the stumbling point. It may not be able to be "qualified" as the funding may not be securitized or guaranteed for Miller standards. Really he needs an atty to work with you all to get this done. Good luck.
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It may help to consult with an elder attorney to see if it is possible to set up a Miller Trust to help him qualify for Medicaid. I don't know the technicalities of this, but read that it is useful in borderline cases. I hope someone experienced with these income-qualifying trusts will have some more input about the technicalities.
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