That period begins to run when the applicant is otherwise eligible for benefits. This penalty period in Minnesota is called a look-back period and it can make an individual not eligible for Medicaid. At least in theory, only those transfers made to become eligible for Medicaid are supposed to be penalized. A period of ineligibility for benefits (transfer penalty) is imposed if an applicant has disposed of assets for less than fair market value during a five-year look-back period. The majority of nursing home residents receive some Medicaid assistance. But this is an uphill battle because you would have the burden of proving your mother’s intent in making the gifts. City, State.
The penalty begins the month of the Medicaid application, not the month the individual transferred the property. NOLO points out that other exempt assets include household goods, personal effects, one automobile and some pre-paid funeral plans. Either the resident or the facility may appeal the transfer penalty on one of two grounds. Medicaid rules say that if a person has transferred assets within the last 5 years, known as the lookback period, that person, when otherwise eligible for Medicaid, will be subject to a period of ineligibility, known as the penalty period, based upon the total amount transferred within the 5-year lookback period. The penalty period is determined by dividing the amount transferred by what Medicaid determines to be the average private pay cost of a nursing home in your state. It often means that nursing homes don’t get paid in full during the penalty period. California, which still abides by its 30-month look-back period, became the only state not to extend the look-back period from three years to five years. This potentially affects many people seeking nursing home senior care paid for by Medicaid, perhaps leaving some individuals to consider other means of paying for senior living options. If your child lived with you for at least two years before you enter the nursing home and that child provided care to you during that period so you could continue living at home, you also avoid the penalty. For example, if an individual in a state where the average cost of care is $5,000 a month transfers $100,000 on April 1, 2013, moves to a nursing home on April 1, 2014, and spends down to Medicaid eligibility on April 1, 2015, that is when the 20-month penalty period will begin, and it will not end until December 1, 2016. Firm Name The individual then potentially qualifies for Medicaid benefits after the Medicaid look back penalty ends. The agency considers or “Looks back” over the previous five years to see if any assets were sold for less than true asset value, given away or otherwise transferred within the same time period when determining eligibility for Medicaid coverage and any violations that restrict or delay eligibility. Now it begins 60 months prior to the date the person applies for Medicaid.
The leading provider of web-based practice development tools for elder law attorneys, we help firms reach clients with tools designed by elder law attorneys for elder law attorneys. Medicaid, a “last-resort” means of paying for nursing home costs, requires that a nursing home resident first use other means of paying for care before Medicaid begins providing coverage.
Elder law attorneys should know what he'll be covering so they can respond intelligently to likely inquiries. Rule: A Medicaid applicant will be found ineligible for benefits as a result gifts made during the look-back period. The Medicaid penalty period does not work that way. Going to the Scheduling Calendar. But this is an uphill battle because you would have the burden of proving your mother’s intent in making the gifts. This transferring of assets usually results in a penalty, meaning that the person seeking senior living at a nursing home is ineligible for Medicaid, “For as long as the value of the asset should have been used” to pay for the nursing home care.
If you would like more information on elder law and long-term care planning go to ElderLawAnswers.com. When considering nursing home senior care and senior living, make sure you avoid improper transfer of assets and know other guidelines of the Medicaid look-back period. That qualification is contingent upon the person not transferring any assets in any months while serving the initial look-back period penalty. At least in theory, only those transfers made to become eligible for Medicaid are supposed to be penalized. Call us: (866)267-0947. Calculation of the length of the ineligibility period (also called “penalty period”) depends on the amount of total gifts. Again, the chances of success are usually slim, but it may be worth a try.
. She pays me $200 every week. Each state has its own, often very specific, process for this. Medicaid helps make sure money and assets are not simply transferred to avoid paying out-of-pocket when a person has the means to pay at least some of the costs associated with nursing home senior care and senior living services.