Qualify for NYC Medicaid with Excess Income Using a Pooled Trust

This is a common problem, often called having “excess income” or needing to “spend down,” can feel like a frustrating roadblock.

However, there’s a solution. If it’s determined that you are not eligible due to excess income, you may still qualify for Medicaid benefits by joining a Medicaid Pooled Income Trust. At BenefitsNYC, we specialize in helping NYC residents navigate this specific option.

What are Pooled Income Trusts?​ Think of a Pooled Income Trust as a legal shelter created specifically to protect your income while maintaining your Medicaid eligibility. It’s a special type of trust established and managed by non-profit organizations approved by New York State.

When you join, you establish a personal account within the Pooled Trust. Each month, you deposit your “surplus” income (the amount over the Medicaid limit) into this account. The non-profit organization then acts as the trustee, managing your funds and paying your approved living expenses directly from your account (such as rent, mortgage, utilities, food, and other necessary bills).

Crucially, the money deposited into the trust is not counted by Medicaid when determining your income eligibility. It allows Medicaid recipients to avoid the problem of having more income than what is allowed, making essential services like home care accessible.