How would you choose long-term care?
Usually, LTC recipients of Medicaid are usually those who are aged or from the disabled group, but there are only a handful who receive SSI and yet opt for LTC.
What are the assets exempted under Medicaid and LTC?
The following are Medicaid exempt assets:
- A house but only when you (the applicant) are likely to return home. Your home may also be among Medicaid exemptions if your spouse, or a child under the age of 21 years or a child over the age of 21 years but disabled, or a brother/sister owning part of the house and having resided there for at least 1 year continues to live in that house.
- Essential items like furniture, appliances etc.
- Personal items like jewelry, clothing etc.
- Burial plots
- Funds for burial up to $1500 each in case you are married and $1200 if you are a single applicant.
- A cash surrender value in a life insurance. This is possible only when the face value of the policies together is less than $1500. However, term life insurance does not have a cash surrender value and hence is totally exempt.
Related readings:
There are 25 states with Long Term Care Partnership Programs.
This is significant legislation as a person can now LEGALLY exempt their assets from nursing home and Medicaid spend down by simply obtaining Long Term Care insurance.
Click HERE to read Florida Statute 409.9102.
(b) Provide a mechanism to qualify for coverage of the costs of long-term care needs under Medicaid without first being required to substantially exhaust his or her assets, including a provision for the disregard of any assets in an amount equal to the insurance benefit payments that are made to or on behalf of an individual who is a beneficiary under the program.
(4) The Department of Children and Family Services, when determining eligibility for Medicaid long-term care services for an individual who is the beneficiary of an approved long-term care partnership program policy, shall reduce the total countable assets of the individual by an amount equal to the insurance benefit payments that are made to or on behalf of the individual.
States with Partnership Legislation:
Arkansas
Iowa
NorthDakota
Colorado
Maryland
Ohio
Florida
Massachusetts
Oklahoma
Georgia
Michigan
Pennsylvania
Hawaii
Missouri
Rhode Island
Idaho
Montana
Virginia
Illinois
Nebraska
Washington
New York
Indiana
Connecticut
California
Posted: Wed May 25, 2011 10:34 am Post Subject: retirment IRA or 401K
are these concered assets in ohio when applaying for medicaid
Posted: Wed May 25, 2011 10:38 am Post Subject: retirement plan
are IRA or 401K considered assets when applying for medicaid in Ohio
Posted: Tue May 31, 2011 08:56 pm Post Subject:
IRAs and 401(k)s are protected assets, but may be required to be used to pay a person's share of cost if over the age of 59-1/2. Money withdrawn from an IRA or 401(K) is considered INCOME and must be spent down each month as it is received.
Posted: Wed Jun 15, 2011 08:44 am Post Subject: Medicaid exempt assets: What Federal and State Laws grant
Wow , How a great information about the topic Medicaid exempt assets: What Federal and State Laws grant . I got all my question solved. Thanks for sharing it .
Posted: Mon Sep 19, 2011 12:55 pm Post Subject: Stimulis Grant to bring home up to safe standards
If I apply for a Gov. Grant to repair my home.Furnace broken(heating with space heaters)Large hole in floor leading to back door,back door falls off,front porch collapsed and falling away from house,windows covered with cardboard,etc.Would my medicare and medicaid be taken away from me?
Posted: Tue Sep 20, 2011 05:04 am Post Subject:
I don't think your medicare or medicaid would be taken away just to try and get govt. grant for your house, which seems to be severely needing a repair. You can inquire your state department about this issue.
Posted: Tue Sep 20, 2011 07:11 am Post Subject:
Government "grants" are not income, so they would not affect your eligibility for Medicare or Medicaid. In many cases, persons on Social Security, Medicare, or Medicaid qualify automatically for certain programs, such as reduced telephone service fees, reduced gas and electricity rates, plumbing, heating, and home weatherizing courtesy of their local utility companies. None of these programs would affect a person's Social Security, Medicare, or Medicaid benefits.
Posted: Sun Oct 02, 2011 01:03 am Post Subject: How does cashing in an annuity affect my medicaid elegibilit
I bought an annuity for $5000 six years ago. I am now in an Assisted Living Center in Illinois due to an illness aquired in January. I am on Medicare and Medicaid. Since I became sick my sister and some others moved my belongings out of my apartment, in to storage and back to where I now live.
All her expenses came close to $2000. I cashed the annuity and received $5628. I paid her $2000 and kept the rest for bills I had. What is my obligation, if any, to report this? And if so, who?
Posted: Tue Oct 04, 2011 06:32 pm Post Subject:
You have reportable income of $5628. The expenses to move your property to storage are probably not excludable. Your Medicaid allowance is $35. You must spend $5593 toward your "monthly share of cost" for Medicaid-eligible expenses. You could lose your Medicaid benefit for the month if your net assets exceed the statutory monthly maximum. As you do every month, you must report your income to the local county agency responsible for administering your claims.
Posted: Fri Feb 10, 2012 07:11 am Post Subject: Look Back
My mother in law lives with me and spends about $2,500 dollars a month of her modest assets to assist with the cost of operating our household which includes a mortgage payment. Is this spending subject to the look back in determining her assets for eligibility for Medicaid should she need to go into a nursing home.
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