For many middle class senior citizens, Medicaid is used to pay the costs of LTC without spending down all their assets. The following information is helpful general information about Medicaid program requirements, however it should not be a substitute for legal advice:
MEDICAID REQUIREMENTS
Asset Requirements:
An applicant can have no more than $2,000 in countable resources. It is necessary for all resources to be disclosed to Medicaid. However, it is important to note that not all assets are countable and it is possible to convert some countable resources into non-countable resources.
Exempt assets: Home up to $500,000 equity, $2,500 burial account, $2,500 life insurance, prepaid burial and funeral, furnishings, car.
Community Spouse Resource Allowance: The community spouse is entitled to keep some of the couple’s pooled countable resources. For 2009, there is a maximum of $109,560.
Transfer of assets: Gifts or transfers of assets within 3 to 5 years may be considered in determining eligibility and create a penalty period for eligibility. Failing to report transfers or asset information is considered Medicaid fraud.
Income Requirements:
The individual must meet the income test for SSI eligibility to be entitled to Medicaid. In 2009 the income cap is $2022 per month for the applicant. However, too much income is almost never a barrier for Medicaid qualification. It is possible to draft a trust which would resolve the excess income obstacle.
Medicaid planning usually consists of converting countable resources into non-countable resources. This planning should be done with an elder law attorney as there are significant consequences to these planning methods if not done properly.
Asset Requirements:
An applicant can have no more than $2,000 in countable resources. It is necessary for all resources to be disclosed to Medicaid. However, it is important to note that not all assets are countable and it is possible to convert some countable resources into non-countable resources.
Exempt assets: Home up to $500,000 equity, $2,500 burial account, $2,500 life insurance, prepaid burial and funeral, furnishings, car.
Community Spouse Resource Allowance: The community spouse is entitled to keep some of the couple’s pooled countable resources. For 2009, there is a maximum of $109,560.
Transfer of assets: Gifts or transfers of assets within 3 to 5 years may be considered in determining eligibility and create a penalty period for eligibility. Failing to report transfers or asset information is considered Medicaid fraud.
Income Requirements:
The individual must meet the income test for SSI eligibility to be entitled to Medicaid. In 2009 the income cap is $2022 per month for the applicant. However, too much income is almost never a barrier for Medicaid qualification. It is possible to draft a trust which would resolve the excess income obstacle.
Medicaid planning usually consists of converting countable resources into non-countable resources. This planning should be done with an elder law attorney as there are significant consequences to these planning methods if not done properly.
