What Mistakes Will Jeopardize My Parents’ Medicaid Eligibility?
August 31st, 2017
Medicaid is a joint program of the federal and state governments that provides health care coverage for those individuals who are disabled and unable to work. There are strict eligibility requirements for Medicaid coverage, both in income levels and value of assets. Furthermore, there are other important rules surrounding the Medicaid program that you must comply with if you want to be eligible for coverage. If you are not careful and do not follow those eligibility requirements, then you risk jeopardizing your Medicaid coverage.
Among other eligibility requirements, Medicaid only covers individuals who have limited assets – usually about $2,000 or less. There are some assets that are exempt from this asset test, including a Michigan home with equity of less than $500,000, personal belongings, and one vehicle. However, if you are married and your spouse remains living at home, he or she can retain a larger amount of assets without jeopardizing your Medicaid eligibility, although there also some limits on that amount, as well. In general, if you transfer any countable assets for less than fair market value during the five years prior to needing Medicaid coverage, then you will ineligible for Medicaid long-term care coverage for a certain number of days, depending on the fair market value of the property that you transferred. Your ineligibility period begins as of the date of your Medicaid application.
There are very complex rules regarding the transfer of assets and how transfers impact Medicaid eligibility. One improper transfer can result in long periods of Medicaid ineligibility, even if you no longer have any assets to pay for long-term care. Given the high costs of nursing home care, a transfer penalty can result in a large hardship to you and your family. You should only engage only in permissible transfers and other Medicaid planning techniques to maintain your Medicaid eligibility, which you can do with the help of your Michigan Medicaid planning attorney.
Long-term care is an important issue that is likely to impact either your parents or other family members at some point in your life. At Legacy Law Center, our goal is to ensure that you have an effective long-term care plan in place to meet your loved ones’ needs and protect their assets from the steadily rising costs of long-term care. We have the skills and knowledge that you need to make the decisions about long-term care planning for your loved ones. Call your Michigan long-term care attorneys at (734) 995-2383 and schedule an immediate appointment.