Medicaid is an excellent resource that helps cover the costs of long-term care for those who are eligible. However, applying for Medicaid and being eligible can be a difficult process. After you apply for Medicaid, there is a 60-month look-back period where your finances are reviewed. In order to apply for Medicaid, the applicant’s monthly income must not exceed $2,349 and cannot have more than $2000 in non-exempt assets.
What is the Medicaid Look Back period?
The Medicaid look-back period is 60 months prior to your Medicaid application date. The purpose of the look-back period is to keep people from qualifying for Medicaid unfairly and to ensure there were no assets transferred or given away in order to fall under the asset cap of eligibility. If transfers are made during the look-back period then it could trigger a penalty and you could be disqualified from receiving Medicaid for a certain period of time.
Income & Asset Caps for Married Couples
If you are married and your spouse is going into a long-term care facility, it is critical that you understand the income and asset restrictions for married couples. If your spouse is going into the nursing home, , all of their income must go towards their care. You can keep all of your income. You can also keep a maximum of one-half of the total assets up to $128,640.
The Bottom Line
Once you are under the income and asset limits, you can apply for Medicaid. Medicaid can be a confusing maze with many different twists and turns throughout the process. If you have questions about your Medicaid eligibility, we encourage you to contact Miller Estate & Elder Law at (256) 251-2137 or register for one of our free estate planning workshops.