Medicaid and Preneed Funeral Arrangements (NYS Funeral Law) 2026 STUDY GUIDE 2026/2027 ACCURATE QUESTIONS WITH CORRECT DETAILED ANSWERS || 100% GUARANTEED PASS NEWEST VERSION

Medicaid and Pre-Need Funeral Agreements

Section 1: General Principles & Medicaid Eligibility (1-15)

1. Medicaid is a:
A) Federal program only
B) Joint federal and state program that pays for healthcare and long-
term care for low-income individuals ✅
C) Private insurance program
D) Medicare supplement plan
2. For Medicaid eligibility, an applicant's assets are generally
limited to:
A) No limit
B) A certain amount (e.g., 2,000𝑡𝑜15,000 depending on state) ✅
C) $1,000,000
D) Unlimited
3. A pre-need funeral agreement can affect Medicaid eligibility by:
A) Increasing countable assets
B) Reducing countable assets through spend-down (if irrevocable) ✅
C) Having no effect
D) Disqualifying the applicant automatically
4. Which type of pre-need contract is generally considered an
excluded asset for Medicaid?
A) Revocable contract
B) Irrevocable contract (if properly structured) ✅
C) Both types
D) Neither type
5. Which type of pre-need contract is generally considered a
countable asset for Medicaid?
A) Revocable contract (because the purchaser can cancel and get
refund) ✅
B) Irrevocable contract

, C) Both types
D) Neither type
6. The primary reason Medicaid applicants purchase irrevocable
pre-need contracts is to:
A) Increase their countable assets
B) Spend down excess assets to qualify for Medicaid ✅
C) Avoid paying taxes
D) Purchase a luxury item
7. Under Medicaid rules, the applicant's assets are counted as of:
A) The date of application and during the look-back period ✅
B) Only the date of death
C) Only the date of birth
D) Never
8. The "look-back period" for Medicaid is typically:
A) 30 days
B) 5 years (60 months) for most asset transfers ✅
C) 1 year
D) 10 years
9. The purpose of the look-back period is to:
A) Reward applicants who transfer assets
B) Penalize applicants who transferred assets for less than fair market
value to qualify for Medicaid ✅
C) Ignore all asset transfers
D) Eliminate pre-need contracts
10. An irrevocable pre-need contract may be considered a
transfer for less than fair market value if:
A) The amount exceeds the reasonable cost of a funeral in the
geographic area ✅
B) The amount is reasonable
C) The contract is revocable
D) The contract is for a spouse
11. For Medicaid purposes, a "countable asset" is:
A) An asset that is available to the applicant to pay for care ✅
B) An asset that is excluded

, C) A liability
D) Income
12. An excluded asset is:
A) Counted toward Medicaid eligibility
B) Not counted toward Medicaid eligibility ✅
C) Income
D) A penalty
13. The applicant's home is generally:
A) A countable asset up to a certain equity limit (but often excluded if
spouse lives there) ✅
B) Always a countable asset
C) Always excluded regardless of value
D) Not considered
14. Medicaid eligibility rules vary by:
A) State (each state administers its own Medicaid program within
federal guidelines) ✅
B) County only
C) City only
D) Federal law only (no state variation)
15. To qualify for Medicaid, an applicant must also meet:
A) Income limits and functional need (e.g., nursing home level of care)
✅
B) Only age requirements
C) Only citizenship requirements
D) Only employment status




Section 2: Revocable vs. Irrevocable for Medicaid (16-30)

16. A revocable pre-need contract is considered a countable
asset because:
A) The purchaser can cancel and receive a refund at any time ✅
B) It cannot be cancelled