Can Paying for Home Health Aides Cause a Medicaid Penalty? (Part 1)

Paying private home aides “under the table” in the years immediately preceding a Medicaid application is a common trap for the unwary.  Without proper documentation, New Jersey will inquire about the weekly ATM withdrawals, checks written to “cash”, or checks written to a person unknown to the case worker. The burden is on the Medicaid applicant to prove that these transfers are for fair value.  Even though your aide is “like family” or “completely trustworthy” does not excuse you from keeping adequate records for Medicaid.  Medicaid will simply refuse to accept statements describing past transfers. Tomorrow we’ll talk about the two components to properly paying a home health aide hired without the assistance of an agency.