2006
Changes to Medicaid
by
Herbert D. Hinkle, Esq. and Valerie A. Powers Smith,
Esq.
Hinkle,
Fingles & Prior, Attorneys at Law
2651 Main Street
Lawrenceville, New Jersey 08648
(609) 896-4200 or (215) 860-2100
The
federal Medicaid law was amended in early 2006. The
changes affect parents more than their disabled children.
Medicaid pays for long term care in nursing homes
and similar facilities.
The
most significant change is that the look-back period
for transfers is 5 years, with the period of ineligibility
being delayed until an applicant otherwise becomes
eligible for Medicaid. The look-back period under
the old law was 3 years, beginning on the date when
the transfer was made.
What
does this mean? An applicant cannot have more than
a few thousand dollars to qualify for Medicaid. Suppose
Mary has $102,000 in countable resources. Under the
old law, if Mary transferred $100,000 on January 1,
2006, she would be Medicaid eligible 18 months later.
If, under the new law, a transfer is made on January
1, 2006, and Mary does not need Medicaid for 12 months,
she will actually be ineligible for 30 months.A major
safe harbor still exists. If Mary has a disabled son
or daughter, she can transfer the $100,000 to a trust
for her child without affecting her own eligibility.
Also, Mary could transfer the $100,000 to someone
else and hope she does not need Medicaid for 5 years.
______
Hinkle,
Fingles, & Prior maintains a multi-state law practice
with offices in Lawrenceville, Marlton, and Florham
Park, New Jersey, and Yardley, and Plymouth Meeting,
Pennsylvania. They lecture and write frequently on
topics of law, aging, disability and estate planning
and are available
to speak to groups in New Jersey
and Pennsylvania at no charge.
Comments
and suggestions for future articles should be mailed
to: Hinkle, Fingles & Prior, Attorneys at Law,
2651 Main Street, Suite A, Lawrenceville, New Jersey
08648-1012.
Copyright
2006 Herbert D. Hinkle. All rights reserved.
