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What is the DHS payout for an irrevocable funeral agreement for the Funeral Home?

  1. $0

  2. $220

  3. $100

  4. $145

The correct answer is: $0

When dealing with irrevocable funeral agreements, the payout amount from the Department of Human Services (DHS) can vary based on state regulations and the specific terms of the agreement. However, in many cases, irrevocable funeral agreements are specifically designed to be exempt assets for Medicaid eligibility, which means they do not contribute to the income or asset limit requirements for applicants. Therefore, the funeral home does not receive a direct payout from DHS for these agreements while they remain irrevocable. The nature of irrevocable agreements means that the funds are set aside specifically for funeral services and cannot be altered or accessed for other expenditures. As such, the payout amount for the funeral home from the DHS would typically be recorded as $0 until the time of need when the service is actually rendered. By understanding the dynamics of irrevocable funeral agreements in relation to Medicaid rules and DHS policies, one can better grasp why the correct answer reflects a payout of $0 for the Funeral Home.