Basic Medicaid Information
We know that planning for Medicaid can be overwhelming if you are at all lost. If you are looking for basic Medicaid information, please give this a read and then call us to set up a consultation.
Basic Medicaid Information | What resources are not counted when determining Medicaid eligibility?
Exempt from inclusion in the Medicaid eligibility resource limit is $878,000 equity in your family residence; irrevocable pre-paid burial expenses; personal and household property; one automobile; and any life insurance policies with a face value of less than $1,500. The family residence must be the primary residence of the applicant, and/or his or her spouse or minor or disabled child. It may be a one, two, or three family house, and also includes any attached property. In order to qualify as the family residence (referred to by Medicaid as “homestead”), the home must be necessary and appropriate to the applicant. Therefore, if an individual with no spouse and/or no minor disabled child enters a nursing home and is not medically expected to return home, he or she would no longer have an exempt homestead due to the fact that the home would no longer be “necessary or appropriate” for that individual. It would then be treated as an available resource for Medicaid eligibility purposes.
Basic Medicaid Information | How can an individual whose income exceeds the Medicaid limit still qualify for Medicaid?
As discussed above, the income limits are $859 (for care in the home) or $50 (for nursing home care) for a family of one, and $3,160.50 plus 75% of the excess for a community spouse of the Medicaid applicant. If the individual has otherwise met Medicaid eligibility requirements, that individual would have to contribute any income over these amounts toward the cost of the care of the institutionalized individual on a monthly basis.
Basic Medicaid Information | What are the disadvantages of creating a Medicaid Trust?
- A Medicaid Trust is irrevocable. Once it is created it cannot be revoked or amended, nor can assets be transferred from it back to its creator.
- The creator of a Medicaid Trust is generally entitled to only the income generated by the trust assets, not the assets themselves.
- The transfer of assets to a Medicaid Trust is subject to a 60-month look back period.
- IRAs and certain pensions cannot be transferred to a Medicaid Trust.
- The drafting of a Medicaid Trust is more expensive that outright transfers. There are also certain ongoing administrative responsibilities.
If you need a skilled Rochester Medicaid attorney to help with your planning, please call our office today. We would be glad to help.