Friday, September 25, 2009
A MEDICAID STORY THAT STARTS OUT BAD BUT TURNS OUT JUST FINE
Recently, we posted an article about a Dad who gifted a large sum to his children and within 6 months needed long term care. Because the money had been spent and could not be returned I had to explain to the daughter that Dad would not be eligible for Medicaid for 4 and ½ years. A complete disaster. But this week let’s take a look at a success story, long before long term care and Medicaid were needed.
Mary contacted our office concerning her mom who was living in an assisted living facility. Mom had transferred her assets to her 3 daughters. They had begun to spend some of the money on Mom’s care but had also opened and closed accounts, moving, combining and commingling assets. Over time it would have been very difficult to follow the paper trail ... >> full
Friday, September 25, 2009
MEDICAID MESS
Every so often, I come across a situation that illustrates so clearly the dangers of going it alone or getting bad advice when dealing with the common issues and dilemmas that seniors and their families so frequently face. I received a call last week from a son living out of state. Mom and Dad, living in New Jersey, were no longer able to live alone. They transferred their home to their son, and moved in with him. That’s when the plan fell apart.
Dad’s health deteriorated more rapidly than anticipated and needed nursing home care. The couple then spent down their remaining assets and applied for nursing home care for Dad. Meanwhile, Son placed the New Jersey home up for sale.
Much to their surprise, the family was informed that the state Medicaid office denied Dad’s application. Why? Because the transfer of the home to Son caused a Medicaid ineligibility ...
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Tuesday, July 28, 2009
COST OF LONG-TERM CARE CONTINUES TO RISE, 2008 SURVEY FINDS
Costs for nursing homes, assisted living facilities and some in-home care services have risen for the fifth consecutive year and might continue to rise unless more long-term care workers can be found, according to a new survey by Genworth Financial.
A private room in a nursing home now costs $76,460 a year or $209 daily, a 17 percent increase since 2004, Genworth’s 2008 Cost of Care survey found. A semiprivate room in a nursing home is now $68,408.
The cost of assisted living facilities is shooting up even faster, having risen 25 percent since 2004 to a current average of $36,090 a year for a one-bedroom unit. Assisted living costs ranged from a high of $4,921 a month in New Jersey to a low of $1,981 a month in Arkansas.
While the cost of in-home care by workers who are not certified by Medicare remained about the same, ... >> full
Monday, June 15, 2009
PROTECTING YOUR HOUSE AFTER YOU MOVE INTO A NURSING HOME
While you generally do not have to sell your home in order to qualify for Medicaid coverage of nursing home care, it is possible the state can file a claim against your house after you die. If you get help from Medicaid to pay for the nursing home, the state must attempt to recoup from your estate whatever benefits it paid for your care. This is called “estate recovery,” and given the rules for Medicaid eligibility, the only property of substantial value that a Medicaid recipient is likely to own at death is his or her home. If possible, you should consult with an attorney before entering a nursing home, or as soon as possible afterwards, in order to discuss ways to protect your home.
In those states that have implemented the Deficit Reduction Act of 2005, the home is not counted as an asset for Medicaid eligibility purposes if ... >> full
Wednesday, May 27, 2009
LONG TERM CARE INSURANCE UNDER THE DRA
The general goal of Medicaid under the Deficit Reduction Act of 2005 (DRA) is to restrict the access of middle-class taxpayers to state medical assistance benefits. One aspect of the law, however, is being touted by the Centers for Medicare and Medicaid Services (CMS) and state medical assistance officials as a measure that will expand the pool of moderate-income individuals who will be eligible for Medicaid. The Long-term Care Insurance Partnership (LTCIP) provisions of the DRA, to the extent implemented in individual states, will allow individuals who have purchased qualified long-term care insurance policies and thereafter exhaust their benefits paying for long-term care to shelter assets of significant value and still become eligible for Medicaid. Section 6021 of the DRA, codified at 42 U.S.C.A. § 1396p(b)(1) and (5), provides that states may amend their Medicaid plans to allow an individual who purchases qualifying long-term care insurance policies to keep more ... >> full
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