 |
|
 |
 |
 |
 |
 |
 |
 |
 Medicaid - What If This System Is Necessary The question often asked of attorneys is generally, after the long-term medical problem has been diagnosed [which may rule out much advance or preventative planning] can a parent dispose of income or resources in order to qualify for Medicaid? The answer is yes sometimes, but there are serious limitations. If you are giving away resources or income to qualify for a community or certain home care services, generally you are permitted to do so, if this is documented. However, many states prohibit the giving away of income or resources to qualify for long-term nursing home institutionalization or hospital stays, or even home nursing care. Generally, you may not be eligible for Medicaid in this situation, if you have given away income or resources, with certain exceptions, within a 36 month period. However, there may not be a full prohibition, and the ineligibility may be limited for a period of time. Again, this is an area of state law governance. In addition, this year, Congress passed a provision making the knowing disposal of assets by certain persons, or their relatives or agents, to be a crime in some instances. You should carefully review this area, and the potential penalties, with your attorney before making any decisions as to "spending down" an estate. Certain people can receive gifts of your income or resources, without hurting your eligibility requirements:
Remember, that your spouse, with the exception of certain circumstances, cannot give away your resources or income, or it will be treated as if you gave it away yourself. Sometimes, attorneys practicing in this area face the question of what if a person meets the "resource" limitation, but earns more "income" per month than allowed under the Medicaid rules? Certain states may allow you to "spend down" your monthly income, which means that you qualify for Medicaid, but you must pay certain of your medical bills with this excess monthly income. These rules are again specific to each state, and you should simply be aware of them in the event that you are faced with this situation. Finally, we are often faced with the question of spouses. For example, what happens if one spouse must be admitted to an institution for long-term care. How does that affect the resources and income of the other spouse [who may be perfectly able to function on their own for another 20 years]? It is safe to say that the general rule requires the non-ailing spouses' income and resources to be counted to the ailing spouse's, unless the non-ailing spouse can prove the separateness and ownership of the resources and income. Also, in the event Medicaid provides certain services to the ailing spouse, it may be permitted to seek reimbursement from the estate of the non-ailing spouse. This is an area that is tricky and varies by state law, and is not an area that should be tackled by a non-attorney.
|
