Nursing home cost can deplete the resources of most people who find themselves in need of full time nursing care. When you can no longer afford the cost of such care, many have to rely on Medicaid.
Unlike Medicare, Medicaid is not an entitlement program. You have to qualify for Medicaid. Since Medicaid is for those with low income or for the indigent, you can only have minimum assets. Assets can be transferred to others; however, this transfer must be made well before you apply for Medicaid coverage. There is a 5 year look back period for transfer of assets. If assets have been transferred within 5 years of applying for Medicaid, you may be ineligible for a period of time based upon the value of the transferred assets. There are some options available.
For a married couple, there are options available to provide support to the spouse. The spouse who is not in the nursing home is referred to as the community spouse and is entitled to a monthly maintenance needs allowance. Income from the spouse qualifying for nursing home care can be used to supplement the community spouse’s income so that the spouse does not become improvised. In addition, the community spouse is entitled to a resource allowance that would represent a certain part of the total resources of the couple. This includes certain types of annuities, cash, checking accounts, savings accounts, stocks, bonds, CDs, and the retirement plans of the nursing home eligible spouse. If eligibility is still an issue after considering the community spouse's monthly maintenance needs allowance and spousal allowance, then you may have to consider spending down some of the assets to qualify for medical assistance.
The following is a list of the type of items available for spend down:
· purchase clothing or medical equipment
· pay off debts
· prepay funeral and burial expenses
· take a vacation
· make home improvements and repairs
· upgrade the car
Further, there are assets that are specifically excluded as resources for purposes of Medicaid eligibility. The community spouse does not have to include any of the following items when applying for Medicaid for the spouse in need of nursing home care:
· The primary residence is an excluded resource. If you are not married, the house could still be excluded as a resource if you intend to return to the home. However, if the equity in the home exceeds $ 500,000 (in Pennsylvania, may be higher in other states), whether married or not, you would not be eligible for medical assistance, Medicaid. If the community spouse intends to continue to reside in the home then the equity limit is not applicable.
· One car is an excluded asset.
· Household goods and personal effects are excluded.
· Pension funds of the community spouse, Mary, are excluded.
· Certain qualified annuity purchases are excluded.
Even if you do not currently need nursing home care, now is the best time to seek advice from an attorney and have a plan.
Our firm can help. Leave a comment or contact us at http://www.ythlaw.com/ You will be glad you did.
Unlike Medicare, Medicaid is not an entitlement program. You have to qualify for Medicaid. Since Medicaid is for those with low income or for the indigent, you can only have minimum assets. Assets can be transferred to others; however, this transfer must be made well before you apply for Medicaid coverage. There is a 5 year look back period for transfer of assets. If assets have been transferred within 5 years of applying for Medicaid, you may be ineligible for a period of time based upon the value of the transferred assets. There are some options available.
For a married couple, there are options available to provide support to the spouse. The spouse who is not in the nursing home is referred to as the community spouse and is entitled to a monthly maintenance needs allowance. Income from the spouse qualifying for nursing home care can be used to supplement the community spouse’s income so that the spouse does not become improvised. In addition, the community spouse is entitled to a resource allowance that would represent a certain part of the total resources of the couple. This includes certain types of annuities, cash, checking accounts, savings accounts, stocks, bonds, CDs, and the retirement plans of the nursing home eligible spouse. If eligibility is still an issue after considering the community spouse's monthly maintenance needs allowance and spousal allowance, then you may have to consider spending down some of the assets to qualify for medical assistance.
The following is a list of the type of items available for spend down:
· purchase clothing or medical equipment
· pay off debts
· prepay funeral and burial expenses
· take a vacation
· make home improvements and repairs
· upgrade the car
Further, there are assets that are specifically excluded as resources for purposes of Medicaid eligibility. The community spouse does not have to include any of the following items when applying for Medicaid for the spouse in need of nursing home care:
· The primary residence is an excluded resource. If you are not married, the house could still be excluded as a resource if you intend to return to the home. However, if the equity in the home exceeds $ 500,000 (in Pennsylvania, may be higher in other states), whether married or not, you would not be eligible for medical assistance, Medicaid. If the community spouse intends to continue to reside in the home then the equity limit is not applicable.
· One car is an excluded asset.
· Household goods and personal effects are excluded.
· Pension funds of the community spouse, Mary, are excluded.
· Certain qualified annuity purchases are excluded.
Even if you do not currently need nursing home care, now is the best time to seek advice from an attorney and have a plan.
Our firm can help. Leave a comment or contact us at http://www.ythlaw.com/ You will be glad you did.
1 comment:
currently i do not need nursing home care, but realy it's the best time to seek advice from an attorney and have a plan. Thanks for your suggestion.
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