| Individuals in need of home care or nursing-home care | | | | individuals, but lives in the home or is a resident of a |
| should understand that despite recent changes in the | | | | nursing home and expresses an intent to return home, |
| Medicaid eligibility rules, they do not have to spend | | | | the individual’s home is exempt as long as the |
| down their savings or income in all instances to qualify | | | | home’s value – minus any outstanding mortgage |
| for Medicaid services. The Deficit Reduction Act of | | | | or loan on the home – is worth $750,000 or less. |
| 2005 burdens the Medicaid laws with new | | | | Medicaid may, under some circumstances, be able to |
| complexities. However, a number of valuable planning | | | | impose a lien on the home or otherwise be able to |
| options have been left in place and they are outlined | | | | recover the sale’s proceeds of the property for all |
| here. | | | | it spent on behalf of the Medicaid recipient. However, in |
| | | | | some instances, this outcome may be often avoided |
| Home Care & Assisted Living | | | | through the use of life estates, trusts and other |
| Although those persons receiving Medicaid home care | | | | planning options. Note that the transfer of the home will |
| services are permitted to have no more than $13,050 | | | | not incur a penalty period for nursing-home eligibility if |
| in savings, there continues to be no penalty period for | | | | the transfer is made to a spouse; a child who is blind, |
| transferring assets to become eligible for the services. | | | | disabled or under age 21; a brother or sister who has |
| The Medicaid program includes home care; adult-day | | | | an equity interest in the house and resided there for at |
| care; private-duty nursing; the Consumer Directed | | | | least one year before the individual was |
| Personal Assistance Program; community managed | | | | institutionalized; or a caretaker child who resided in the |
| long-term care; the Assisted Living Program and more. | | | | home for at least two years before the person was |
| | | | | institutionalized and provided care to maintain the |
| Nursing Home Care | | | | person at home. |
| Under the old and new law an individual who transfers | | | | |
| assets to qualify for Medicaid institutional services may | | | | Supplemental Needs Trusts |
| incur a penalty period during which time the individual | | | | A disabled individual under sixty-five-years with savings |
| will not qualify for Medicaid coverage in a nursing | | | | in excess of the amount permitted under the Medicaid |
| home. However, it is never too late to conserve | | | | rules may transfer his own savings to a supplemental |
| lifetime savings. An individual who has resources in | | | | needs trust without jeopardizing his eligibility for |
| excess of the Medicaid limits and faces immediate | | | | Medicaid services in the community or in a nursing |
| placement in a nursing home, or who is already a | | | | home. The money in the trust may be used to pay for |
| resident there, may still protect a substantial portion of | | | | luxuries and necessities. Similarly, a relative or friend |
| his resources and ultimately qualify for Medicaid. In this | | | | may establish a supplemental needs trust and use the |
| instance, a legal instrument such as an annuity may be | | | | funds in the trust for the benefit of the disabled person |
| used to avoid the spending down. Note also that there | | | | of any age while that individual continues to receive |
| is no penalty period for Medicaid eligibility if assets are | | | | Medicaid benefits in the community or in a nursing |
| transferred to a spouse; the individual’s child under | | | | home. |
| age 21; a blind or disabled child of any age; or a trust | | | | |
| established for the sole benefit of any disabled person | | | | Pooled Income Trusts |
| under the age of 65. | | | | By participating in a pooled-income trust, disabled |
| | | | | persons of any age who are receiving community |
| The Home | | | | Medicaid including home care, adult-day-care and other |
| An individual’s home – a house, cooperative or | | | | non-institutional services may continue to use virtually all |
| condominium apartment – is an exempt asset; that | | | | their income to cover their living expenses. After joining |
| is, it is not counted by Medicaid, regardless of the value | | | | the trust they will qualify for Medicaid without having to |
| of the home, as long as the individual’s spouse, child | | | | give over to Medicaid that portion of their income |
| under 21, blind child or disabled child lives there. If an | | | | which is in excess of the Medicaid allowed limit of |
| individual does not live with any of the above | | | | $745 per month. |