Increase in Medicaid Divisor
As I have written about frequently in this blog, when applying for Medicaid an applicant must establish by documentary evidence that he or she did not transfer assets in the 5 year period directly before the requested start date for benefits. Any transfers made for which product or service of equal value
What Makes an Annuity Medicaid Compliant – Part 3
In last week’s post, I explained how a Medicaid compliant annuity (MCA)works in a married couple situation. This week we’ll see how it can be helpful in the case of a single Medicaid applicant. An MCA can be useful in preserving some assets when there is no chance of waiting out a
Medicaid Applications – Like a Tax Audit on Steroids
While I am not an accountant and have never experienced an income tax audit, when describing the Medicaid application process I often reference it to a tax audit. It is an intrusive government review of an applicant’s finances over a 5 year time period. I have been filing Medicaid applications for
The Problem of Unexplained Deposits – Part 2
Last week I wrote about how unexplained deposits have the potential to be more damaging to a Medicaid application than unexplained withdrawals. That’s because deposits must be explained or the application is denied for being incomplete and those same deposits must be explained in any new application unless the deposit then falls outside
The Problem of Unexplained Deposits – Part 1
More and more of the Medicaid applications we handle these days involve issues surrounding assets received by way of the death of a family member. More often than not it will be a spouse who died, however, it may also be a parent or other relative. As part of Medicaid applications now,
N.J. Court Gives Guidance on Hiring Aides – Part1
Just last week the New Jersey Appellate Division issued a decision regarding Medicaid that provides a road map for anyone hiring aides at home who hopes to qualify for Medicaid benefits when private funds run out. The case itself is unpublished which means it cannot be relied on as precedent in future cases. Nevertheless, it gives
Filing a Medicaid Application? Better Be Prepared (Part 1)
Even before the current pandemic, getting a Medicaid application approved was increasingly challenging. Now, with some government staff working remotely and many government offices short staffed because of social distancing requirements, it has not gotten better. What we are finding in our office is that applications that should clearly be approved are being denied. In
2020 Medicaid Penalty Divisor
Many of my articles concern Medicaid and avoiding or trying to minimize a Medicaid penalty. That penalty, which is a waiting period for benefits is a result of a mathematical calculation. The amount of any transfers for less than fair value is divided by the Medicaid divisor to get the resulting penalty. The divisor is what
The Hidden Cost of Transferring Your Home (Part 1)
Joe sounded upset when he called us. His mother wanted to protect her home from the cost of long term care so a few years ago she transferred the house to Joe and his sister, keeping a life estate for herself. Now they want to sell the
New VA Rules Effective 10/18/18 (Part 1)
I have written many times in the past several years about possible rules changes to the VA Aid and Attendance pension program, which provides additional income to aging veterans and their spouses who need long term care. Well, those changes are finally here and with almost no warning. The