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Help in Understanding New Medicaid Regulations
Provided Online
ElderLawAnswers.com looks at details of new
transfer rules
April 24, 2006 – Most senior citizens would prefer
to pay their own way as they are forced to seek professional help in
dealing with the deterioration of mind and body that is inevitable with
aging. Unfortunately, many cannot afford it and must turn
to Medicaid for help. ElderLawAnswers.com this week looks at the new laws
pertaining to asset transfers that may be necessary to qualify for
Medicaid.
What Do the New Medicaid Transfer Rules Mean
to You?
By ElderLawAnswers.com
 The Deficit Reduction Act of 2005 (DRA) places new
restrictions on the ability of the elderly to transfer assets before
qualifying for Medicaid coverage of nursing home care. This means it
could be more difficult to qualify for Medicaid benefits.
The law extends Medicaid's "lookback" period for
all asset transfers from three to five years and changes the start of
the penalty period for transferred assets from the date of transfer to
the date when the individual transferring the assets enters a nursing
home and would otherwise be eligible for Medicaid coverage. In other
words, the penalty period does not begin until the nursing home resident
is out of funds, meaning she cannot afford to pay the nursing home.
The law also makes any individual with home equity
above $500,000 ineligible for Medicaid nursing home care, although
states may raise this threshold as high as $750,000. For more on the
provisions of the new law,
click here.
The new federal law applies to all transfers made
on or after the date of enactment, February 8, 2006. However, the law
gives states that must pass legislation to meet the new requirements
more time to come into compliance. This gives many people in most states
a little time to plan. The deadline for states to enact their own laws
varies from state to state, but generally it is the first day of the
first calendar quarter beginning after the end of the next full
legislative session.
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Understanding Medicaid |
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ElderLawAnswers.com has two very detailed
reports on Medicaid.
• For information about Medicaid,
click here.
• For more help on Medicaid Planning,
click here.
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Any asset transfer made before February 8 falls
under the old transfer rules. But what about someone who transfers
assets after that date but before his or her state comes into compliance
with it? In all probability, this will depend on the date of the
application for Medicaid. If the application is filed before enactment
of the state law, it will probably come under the old transfer rules. If
it is filed after the enactment of the state law, it will come under the
new transfer rules. But to be sure, check with an elder law attorney in
your state.
Transfers should be made carefully, with an
understanding of all the consequences. People who make transfers must be
careful not to apply for Medicaid before the five-year lookback period
elapses without first consulting with an elder law attorney. This is
because the penalty could ultimately extend even longer than five years,
depending on the size of the transfer. (Last Updated: 4/22/2006)
For updates to this story after 4/24/06 –
click here
For ElderLawAnswers home page –
click here
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Nursing Home Abuse, Medical Malpractice? Contact a lawyer.
click here
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