SECTION 358.338. Treatment of a Trust Established with Zebley v. Sullivan Settlement Funds

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(a) The Texas Health and Human Services Commission excludes a Medicaid-qualifying trust established for a minor child using a lump sum payment received in the settlement of Zebley v. Sullivan from countable resources under undue hardship provisions. Undue hardship exists because the minor child would otherwise be forced to spend the settlement funds on services now covered by Medicaid when the funds will be needed once the minor child reaches majority.
(b) A trust established using Zebley v. Sullivan settlement funds is excluded under undue hardship policy, even when the trust is set up on or after August 11, 1993.

Source Note: The provisions of this §358.338 adopted to be effective September 1, 2009, 34 TexReg 5497

                    
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