Frequently Asked Questions

1. Will I, as the Community Spouse, be allowed to retain any of my husband's income?
2. Is there any way to save the family home?
3. What is Medicaid Estate recovery?
4. Can I transfer all of my assets to my children?
5. Can I pay my children for services they provide to me, ie. laundry, taking me to doctors appointments, etc.?
6. When can I file a Medicaid Application?
7. What are non-countable and countable resources?
8. Do I have to cash in my life insurance policies?
9. Do the accounts that I own jointly with someone else count toward my Medicaid eligibility?
10. Is there a way to protect my Medicaid benefits in the event I receive an inheritance?

Will I, as the Community Spouse, be allowed to retain any of my husband's income?
The Community Spouse is entitled to a monthly income of $1,711.25. To the extent that the spouse's monthly income is less than this amount, a supplement can be obtained from the Institutionalized Spouse's income

Is there any way to save the family home?
There are several techniques available within the Medicaid regulations that make saving the home possible. It is best to seek the advice of an experienced Elder Law attorney regarding the best plan for your particular situation.

What is Medicaid Estate recovery?
Upon the death of the Medicaid recipient, the State can make a claim against the decedent for services paid for by Medicaid during their lifetime. The State can only recover from the assets owned by the decedent at the time of death.

Can I transfer all of my assets to my children?
A transfer of assets results in a penalty for Medicaid eligibility. The penalty is a period of months that is calculated by taking the average nursing home cost for a particular region (determined by the Department of Social Services) and dividing that number into the amount transferred. There are some transfer strategies available which comply with the Medicaid regulations and utilize the Medicaid lookback period. It is best to seek the advice of an experienced Elder Law attorney regarding the transfer strategy that will work best in your particular situation. Please keep in mind that with the enactment of the Deficit Reduction Act of 2005, even small gifts made without regard to Medicaid planning can cause significant penalties and hardship.

Can I pay my children for services they provide to me, ie. laundry, taking me to doctors appointments, etc.?
Yes, a child who provides a home and/or care to a parent is entitled to be compensated by the parent for such care. The parent's doctor must provide a written statement that the care is necessary. The type of care provided to the parent and the payment received by the child should be set forth in a written agreement signed by the parent and the child. The child must keep detailed records of the services provided and the compensation received.

When can I file a Medicaid Application?
For a single individual, a Medicaid application can be filed when you have entered a nursing home, your countable resources have been reduced to below $2,000 and after all periods of ineligibility have expired. For a married couple, a Medicaid application can be filed when the institutionalized spouse's countable resources have been reduced to below $2,000 and the Community spouse's assets have been reduced to the appropriate CSRA limit.

What are non-countable and countable resources?
Countable resources are most assets that can be converted to cash and used to pay for your support or healthcare. They are considered in determining Medicaid eligibility. Medicaid rules permit that some resources that would otherwise be counted are excluded for determining Medicaid eligibility. An example of a non-countable resource is an individual's term life insurance.

Do I have to cash in my life insurance policies?
Generally, if the face value of your whole life insurance policies exceeds $1,500, the cash value of those policies are treated as countable assets for purposes of determining Medicaid eligibility. For a married couple, the Community spouse may retain their whole life insurance policies with face values in excess of $1,500 as part of their CSRA.

Do the accounts that I own jointly with someone else count toward my Medicaid eligibility?
Under the Medicaid eligibility rules regarding jointly-owned CD's and bank accounts, the Department of Social Services assumes that all of the funds in the account belong to the Medicaid applicant. Investment accounts and other accounts titled as joint tenants are treated as each person owning an equal fractional share of the total assets in the account.

Is there a way to protect my Medicaid benefits in the event I receive an inheritance?
Through the creation of certain irrevocable Supplemental Needs Trusts, your Medicaid benefits in the event you are the recipient of an inheritance, personal injury claim or a divorce can be protected. It is best to seek the advice of an experienced Elder Law attorney regarding the best plan for your particular situation.