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
On Credit Cards and Medicaid – Part 2
In last week’s post I told you about two calls I received regarding Medicaid. In each case the caller was concerned about how credit card charges on a Medicaid applicant’s card affects eligibility. A common misconception about Medicaid is that debts affect eligibility. Not true, at least in the sense that the State
Recent Trends with Medicaid Applications – Part 2
In my post last week I told you why I think Medicaid applications have become more difficult to get approved. This week I will talk about the ways the State has made it more challenging. One way, which I have written about several times over the past few months is the QIT
How Scrutinizing is Medicaid Really? Part 2
Last week I wrote about a question I hear often about Medicaid. Isn’t there a certain amount of gifting that is allowed under Medicaid regulations? The answer as I stated last week is that there really isn’t. Any gift or transfer for less than fair value is subject to a penalty. In practice, however,
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
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
A Long Term Care Mess (Part 3)
My posts the past two weeks have been about Mary’s problem caring for her stepmom, June after her dad died. Last week I told you that we needed to file a guardianship action. 2 doctors needed to examine June and sign affidavits stating that in their medical opinion she was
A Long Term Care Mess (Part 2)
In last week’s post I started telling you about Mary’s call concerning her stepmom, June. Mary’s dad had recently died leaving her with the responsibility of caring for June. He also left June with ¼ of his estate per his will which she knew would not last very long, approximately