Do I Have to Wait 60 Months to Qualify for Medicaid?
One of the most frequent questions that I get as an elder law attorney when someone’s trying to apply for Medicaid to get in a nursing home, is, “Do I have to wait 60 months to Qualify for Medicaid?” And the answer is, “No.”
The Medicaid Look Back Period is Different from the Medicaid Penalty Period
60 months is simply the look-back period, or the amount of time that Medicaid looks back to see if you’ve given any assets away or if you have sold assets for less than fair market value. So, when you file the application, you have to meet the financial requirements which I’ll address in another video. But once you meet those financial requirements then Medicaid is also going to look back 60 months to see if you’ve given away any assets during that time.
If you have given away assets during the past 60 months, then they’re going to penalize you based on the amount of money that was given away. The penalty period is determined by the amount of money you gave away divided by a divisor that is put out by Medicaid. The Medicaid look back period of 60 months is the same for everyone. The penalty period is different for everyone. However, there is no Medicaid 60 month rule that says you have to wait 60 months to apply for Medicaid. Most of our clients don not wait 60 months. We even have clients who are already in a nursing home and we can help them protect some of their assets.
if you have any other questions, watch the other videos or give us a call 256 472-2172. I look forward to meeting you.
The new year is more than a time of partying, recovering from Christmas, and figuring out how to pay our credit card bills. For many of us, it’s a time of reflection. We can use the new year as motivation to review our lives and make some necessary changes. For many of us, Medicaid planning for the new year should be top priority.
Why is Medicaid planning necessary?
For one thing, long-term care is expensive. According to Genworth statistics, the 2018 costs for long-term care in Alabama are: $3,241 per month for Home Health Care $3,271 per month for an assisted living facility $6,279 per month for a semi-private room in a nursing home $6,661 per month for a private room in a nursing home
You have three basic ways to pay for long-term care:
Self-pay,
Long-term care insurance, or
Medicaid and other government benefit programs.
Without proper planning or insurance, the nest egg you spent years building could evaporate quickly.
What does Medicaid planning involve?
When you engage in Medicaid planning, you are making it more likely that you will qualify for Medicaid. To qualify for Medicaid:
Your income must be below Medicaid’s income limit. In 2018, an applicant could make no more than $2,025 per month.
You must have resources worth less than $2,000 on the first day of the month. Not all of your property will be considered resources.
Medicaid or Medicaid must medically approve you.
Finally, you must be a United States citizen and live in Alabama.
Medicaid planning primarily concerns meeting the income and resource limits. To do so, you can reduce your countable assets. However, Medicaid does not just look at your current financial situation. They actually employ a “look back period” which means they look at your finances for the 60 months prior to your application date. Any gifts or transfers made during that 60-month period may delay or minimize your Medicaid benefits.
How should I start Medicaid planning?
Immediately, of course! It is the New Year after all. Seriously, though, it is impossible to know when might need Medicaid. If it happens less than 60 months from right now, your ability to qualify could be jeopardized.
The attorneys at Miller Estate and Elder Law have the experience and skill to get your Medicaid planning in shape for the new year. To make an appointment to learn more about Medicaid planning, give us a call at 256-472-1900. Miller Estate and Elder Law is now located at 818 Leighton Avenue in Anniston, but we serve clients in Leeds, Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
Steve realized his father, Hank, needed help. Still, he was surprised when a doctor told him that Hank needed 24/7 nursing care. As he looked for a nursing home, he was surprised at the cost and unsure of how his father would pay for it. Someone suggested he check into Medicaid. Steve checked the Alabama Medicaid website, but was dismayed to learn his father’s income was just a little too high. Fortunately, someone suggested he see a Medicaid planning attorney to ask about Miller Trusts.
Medicaid Eligibility
When someone applies for Medicaid benefits, a caseworker reviews their application and supporting documents to make sure they are eligible. In particular, they look at income and resources.
To qualify for Medicaid, an individual’s monthly income must be no more than $2,205. The individual’s resource limit must be $2,000 or less on the first day of each month.
These limitations are important to know. For example, if Hank’s income is $2,500 a month, he may be denied Medicaid benefits. Fortunately, there may be a solution to Hank’s problem with excess income.
Where a Miller Trust Might Help
Medicaid applicant’s, or their families, may need to find a legal way to reduce the applicant’s monthly income. This often is accomplished through a Miller trust.
All trusts have a grantor, trustee, and at least one beneficiary. Trusts are also funded with money or other assets.
With a Miller Trust, a Medicaid applicant or recipient deposits their monthly income in excess of Medicaid limits into the trust. The amount deposited no longer counts against the benefit recipient.
With Hank, he makes almost $300 a month more than the Medicaid income limit. He may be able to open a Miller trust, then deposit $300 a month into the trust.
The trustee can use funds from the Miller trust to pay the recipient’s expenses.
Setting a Trust Is Tricky
The attorneys at Miller Estate and Elder Law use their experience and knowledge of trusts to help clients make informed decisions. For a free consultation, contact us at 256-251-2137 or use our convenient Contact Form. Although we’re located in Anniston and Birmingham, we also help clients in the Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
Some things just don’t go together, like oil and water or peanut butter and sardines. Sometimes it’s not a big deal – or the resulting problem is minor. But when something as important as your Medicaid eligibility is involved, that’s a different story. For example, do-it-yourself estate planning and Medicaid don’t mix at all. Here’s why:
What is DIY estate planning?
DIY stands for do-it-yourself. Americans are fond of taking on DIY projects ranging from planting an herb garden to building an addition onto their homes. However, your estate plan may be a lot more complicated and last a lot longer than the deck you built last year.
Due to the Internet, exposure to do-it-yourself estate planning has increased. People can click a few buttons and have a Will ready for signing. But DIY estate planning cannot analyze your particular circumstances, personalize your estate plan, listen to your concerns, and give information specific to special situations.
And it’s unlikely that DIY estate planning can address the need to plan for Medicaid eligibility.
What happens if you need Medicaid
Planning for expensive medical treatments, including long-term care, must begin before you need that care. DIY typically does not take that into account. You need an attorney who can review the facts of your case, then use knowledge of the law and experience to find the best options.
For example, a website algorithm may not take into account the Medicaid five-year look back period. Medicaid case workers will review an applicant’s financial history for 60 months prior to the date of application. Someone who uses DIY estate planning may sign the Will, then give assets to family members to decrease the value of his or her estate. Property may be titled or transferred in such a way that Medicaid eligibility is not affected. If done improperly, transfers or gifts made within that look back period may decrease, delay, or even prevent Medicaid benefits.
A lawyer who knows Medicaid can offer advice on how to avoid such penalties.
Medicaid Rules and Requirements Are Complicated
Don’t let DIY estate planning stand in the way of receiving benefits you deserve. Schedule a consultation with one of the attorneys at Miller Estate and Elder Law. Our phone number is 256-472-1900. Miller Estate and Elder Law is now located at 818 Leighton Avenue in Anniston, but we serve clients in communities like Hoover, Vestavia Hills, Irondale, and Calera.
Life throws curveballs sometimes, and we have to be ready. In her 40s, Joanie thought Medicaid planning was far ahead of her. She put off talking to her attorney about Medicaid planning. Unfortunately, she suffered permanent traumatic injuries as a result of a car accident. Her family frantically searched for ways to pay for Joanie’s 24/7 nursing care. As they started the Medicaid application process, they wished Joanie would have done some Medicaid planning.
Why Start Medicaid Planning?
Long-term care is expensive. There are basically three ways to pay:
Self-pay, which can deplete a person’s life savings;
Long-term care insurance, which may charge high premiums or be impossible to get; or
Government benefit programs, like Medicaid.
Applying for Medicaid is not easy. For one thing, Medicaid uses a 60-month look back period. This means they review an applicant’s financial records for the 60 months prior to his or her application date. Certain transactions may cause Medicaid benefits to be delayed or even denied. However, Medicaid planning can take care of this before Medicaid is even needed.
For example, an individual might change their property titles or transfer all their property to a trust or just outright give real property or high-end assets to heirs. This type of activity must be done before the 60 month look back period, though.
How to Start Medicaid Planning.
Consult with an attorney who understands the Medicaid process. Specifically, you will want to talk to someone who knows
It may be possible for you to re-title your property. This can be tricky and lead to unintended – an unwanted! – consequences if done incorrectly.
An attorney who understands Medicaid planning may be able to give you more information about long-term care insurance. It’s not for everyone but can be an excellent way to pay for long-term care instead of digging into savings and retirement accounts.
Finally, there are trusts that may allow you to safeguard at least some of your hard-earned assets for your heirs.
Don’t Wait.
The attorneys at Miller Estate and Elder Law know how to help you with Medicaid planning. For a free consultation, contact us at 256-251-2137 or use our convenient Contact Form. We also offer free workshops and guides with more information about topics that matter to you. Although we’re located in Anniston, we also help clients in the Birmingham, Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
If you have ever spent any time in an emergency room, you know how stressful it is. You may find yourself sitting beside a loved one anxiously awaiting a diagnosis. Or maybe you will be the one in need of emergency care. Either way, you may find yourself wondering how to pay for future medical treatments and long-term care. Medicaid may be an option, but first you need to find out if you or your loved one is eligible for Medicaid. Understanding Medicaid and its eligibility requirements might help.
First, Medicaid is funded by the federal government, but administered by individual state agencies. The program supplies health care for people in need. However, not everyone can receive Medicaid. Applicants to the program must meet strict requirements to qualify.
Understanding Medicaid Medical Eligibility
Some people think Medicaid is only for elderly people. However, there are several programs within Medicaid that aid other groups, like pregnant women and children.
Eligibility requirements vary depending on the program you apply for. No matter which program you choose, however, you must show a medical need, be disabled, or be blind. For example, to qualify for the Medicaid for Elderly and Disabled program, you may need to prove that long-term nursing care is needed.
Applicants also must meet income and resource limits to qualify for Medicaid coverage.
Understanding Medicaid Financial Eligibility
Income is only one test used to determine Medicaid eligibility. Applicants must also prove their assets and resources are within limits in most Medicaid programs. Also, income, asset, and resource limits may vary. For example, Medicaid limits for 2018 are:
Qualifying Through SSI: Aged, blind, or disabled individuals may earn $770 per month for one person, $1,145 for a couple. Resources cannot exceed $2,000 (single) or $3,000 (couple) per month.
Nursing Home Medicaid: Individuals eligible for institutional care have an income limit of $2,250 per month and a $2,000 resource limit as of the first day of the month.
Home and Community Based Waivers: The limit is $2,250 per month for income and $2,000 per month for resources.
This list does not include other programs, such as those for children, parents and caretaker relatives, pregnant women, among others.
Applying for Medicaid Is Hard. We Can Help.
The attorneys at Miller Estate and Elder Law understand the estate planning needs of their clients. Contact Bill Miller at 256-251-2137 to schedule an appointment. Though our office is now located at 818 Leighton Avenue in Anniston, we serve clients in Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
