Legal
OIG Approves Provider-Backed Subsidies for Special Needs Trust Fees
In OIG Advisory Opinion 26-19, the Office of Inspector General approved an arrangement allowing certain health care providers to subsidize costs that Medicare and Medicaid beneficiaries incur to maintain their eligibility for those programs, specifically fees associated with pooled special needs trusts. The opinion, discussed in a Krieg DeVault analysis, reflects OIG's continued support for donor-funded patient assistance programs when structured with appropriate safeguards. Beneficiaries who rely on pooled special needs trusts to preserve Medicaid and Medicare eligibility are affected by the arrangement.
Why it mattersProviders and trust administrators structuring similar donor-funded subsidy arrangements for Medicaid and Medicare beneficiaries could look to this opinion's guardrails as a compliance template.