Although there has been no official pronouncement from the Centers for Medicare & Medicaid Services, we think we know what next year’s spousal impoverishment thresholds will be for Medicaid long-term care applicants. The annual adjustments to the figures are based on the consumer price index for urban consumers for the September prior to the year in question, in this case September 2012, a figure that was just released. Pennsylvania attorney the results in his blog. Marshall cautions that his projections may differ slightly from CMS’s ultimate figures if the agency rounds differently, but we feel certain that the figures are…
The U.S. Court of Appeals for the Second Circuit upholds a district court ruling that Connecticut cannot treat the income stream from an annuity as an available asset for the purposes of Medicaid eligibility. Lopes v. Dept. of Social Services (2nd Cir., No. 10-3741-cv, Oct. 2, 2012). After John Lopes moved to a nursing home, his wife, Amelia, purchased an annuity. She received a letter from the annuity company stating that no part of the annuity was assignable, including periodic payments. Mr. Lopes applied for Medicaid. The state identified a potential buyer of the annuity's income stream and directed Mrs. Lopes to…
People with special needs may qualify for a variety of government benefits, including Medicaid and Medicare. It can be difficult to tell the two programs apart, especially because their names are so similar. However, Medicaid and Medicare, which account for the lion's share of federal spending on health care, are dramatically different programs with different eligibility requirements and benefits. Here's how the two programs differ. Means-Tested Means Medicaid Medicaid is a state and federal partnership program that gives medical coverage to selected groups with low-incomes — children, pregnant women, parents of eligible children, people with disabilities, and elderly in need…
Barrels of ink have been spilled over Medicare during this year's campaign. There's nothing wrong with that: Obama and Romney have fundamentally different approaches to Medicare and they deserve attention. Romney, for example, wants to increase the eligibility age to 67 and convert Medicare into a voucher system that relies primarily on competition between private firms to rein in costs. That's a big change. At the same time, the actual differences in what the two candidates would spend on Medicare is fairly modest. This is more a fight over means than ends. The same can't be said for Medicaid. Romney…
A senior entered a nursing home for rehabilitation following a car crash. After she left the nursing home, the $93,000 bill at the home was left unpaid. She had applied for Medicaid, which would normally pay the bill if she couldn’t. However, the Medicaid application did not get approved in enough time to satisfy the nursing home, and it sued her son for the bill, states Forbes Magazine. The Commonwealth of Pennsylvania, like 29 others in our country, has something called a “filial responsibility law”. Those laws require that spouses, children and even parents of needy adults support the indigent. …
I’ve written before about the dangers of filing a Medicaid application yourself, without any idea of how the Medicaid rules work. But, in the past month we have had a rash of calls from folks who did just that and ended up with Medicaid penalties – months of Medicaid ineligibility and no way to pay for care. It’s a disturbing trend but it can’t be ignored. The state is taking longer to decide Medicaid applications and is scrutinizing them more than ever. Why? Because it just doesn’t have the money to pay for care. If it can find transfers and…
Sally was the “responsible daughter” and it seemed like whenever there was a family problem, it fell to her. She was the one her dad trusted the most, so years ago he named her as the agent on his Power of Attorney. He knew that she would make sure his finances were safe and that he would be well cared for. Sally visited her father at the care center nearly everyday to make sure he was getting the care he needed. She talked with the folks in the business office and made sure that dad’s bill was paid every month…
Medicare will pay for the nursing home. Medicare does not pay for long term care at the nursing home. Medicare consists of four parts: A, B, C, and D and is offered to those who are at least 65 years old, less than 65 years old and disabled, or in end-stage renal failure requiring dialysis or a kidney transplant. Medicare Part A pays for hospital stays, some home health care for rehabilitation services, and inpatient rehabilitation services. There is no monthly premium for Part A as these services are covered by payments made through your lifetime payroll taxes. Medicare Part…
Many elder law attorneys advise clients to consider using annuities as a means to protect assets for the community spouse when their spouse is in the nursing home. An important decision was reached that may benefit planners and their elder law clients in achieving asset protection goals. Reversing a district court, a U.S. court of appeals holds that an annuity is an unavailable resource even if it is purchased in addition to the community spouse resource allowance, and that there is no transfer penalty for the couple’s purchase of the annuity prior to a determination of Medicaid eligibility. Morris v….
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