MEDICARE ALERT!
Posted by Thomas J. Bogar on January 14, 2010
In today’s economy, I am finding more clients asking advice and assistance for an elder parent or relative about to enter a nursing home. The application and qualification process for Medicaid can be overwhelming, and the consequences for a poorly executed plan can be devastating and may be as serious as Federal criminal prosecution. Because of the resource restrictions on Medicaid eligibility, the transfer of assets by gift to a relative was once a common means for preserving assets from the costs of care in a nursing home. Since the enactment of the Deficit Reduction Act on February 8, 2006 (“DRA”), transferring assets for less than value in order to qualify for Medicaid has now become much riskier. In fact, the DRA increased the look-back period from 3 to 5 years and the penalty period has been changed as well. Poor planning without knowing all of the risks involved could jeopardize any chances for Medicaid leaving the senior with no ability to pay for nursing home care. There are exceptions to these rules, however, but they are complex. Anyone considering placing a spouse or a relative into a nursing home should consult with an experienced elder law attorney.
