More than 65 million Americans provide more than $350 billion a year in uncompensated care to friends and family members. Now, with older populations growing rapidly, the need for caregiving is rising, just as a brutal economic downturn is making money increasingly tight. In response, some family caregivers are being paid for their work, usually by an aging parent. And while authoritative numbers aren't available, David Wingate, elder care attorney states” they're seeing more families creating caregiver agreements.” However, he cautions that agreements need to be extensively documented and must stand up as arm's length contracts. Furthermore, family members involved…
Here’s another important reminder on how much of a stickler Medicare and Medicaid can be when it comes to denying benefits: the Matter of Komanoff Ctr. for Geriatric & Rehabilitative Medicine v Daines (N.Y. Sup. Ct., App. Div., 2nd Dept., No. 2010-05776, June 28, 2011) (here summarized on ElderLawAnswers.com.) It’s the case of Bernadette Jordan and how she entered a nursing home and filed for Medicaid only to find that the State ruled her ineligible for a period of 14.31 months. Apparently, Mrs. Jordan had transferred funds from a revocable trust to her daughter, to repay expenses that her daughter…
Unfortunately, the State of Maryland does not take pre-nuptial agreements into consideration when determining Medicaid eligibility. All assets owned by either spouse are considered jointly owned and must be divided and spent-down exactly as they would if there was no pre-nuptial agreement in place. The only way a pre-nuptial agreement is effective is if the couple actually divorces.
In a study in the journal Health Affairs, that expansion of home-based care can save states money over the long run. The paper looked at Medicaid data from 1995 to 2005. States incurred extra cost when they spent to create new social service programs to care for people at home, but that expense, over time, paid for itself because it was cheaper to care for people at home. Policymakers often cite the "woodwork effect" as a reason to worry about expanding home-based care. This is the argument that if states provided people what they want — home-based care — then…
If you have assets under $2,500, and reside in a nursing home, the State of Maryland through Medical Assistance (Medicaid) will pay the nursing home. However, a house that is a person’s primary residence is exempt for purposes of Medicaid eligibility provided that the community spouse is still residing in the house, and the net value of the house does not exceed $500,000. Additionally, if you are a single, then sign the application that you have an “intent to return to the house,” even if that it’s impossible and you remain in a nursing home. The home is an exempt…
Generally, you do not have to sell your home for Medicaid qualification of nursing home care. However, the state can file a claim against your home after your death. If Medicaid pays for your nursing home care, the state must attempt to recoup from your estate the amount it paid for your care. This is called "estate recovery." Consequently, with the rules for Medicaid eligibility i.e. assets under $2,500 the only property of substantial value that a Medicaid recipient is likely to own at death is their home. Therefore, you should consult with an elder care attorney before or after…
The cost of nursing homes and other assisted living facilities continues to rise significantly, according to the Market Survey of Long-Term Care Costs conducted by insurance provider MetLife. Private-room nursing home rates rose 4.6% in 2010, increasing to an average of $229 per day or $83,585 per year, while assisted living rose 5.2% on average to $3,293 per month, or $39,516 per year. "The cost of care in nursing homes and assisted living has been and continues to be high and, in the past year, the increases have even outpaced medical care inflation of about 3%," Sandra Timmermann, director of…
1. Myth: “I can hide my assets and get eligible for Medicaid.” The Truth: Intentional misrepresentation in a Medicaid application is a crime and can be costly. The IRS shares any information concerning income or assets you have with the Medicaid agency. These reports include interest income and the sale of stocks or bonds. You or whoever applied may have to pay Medicaid back to avoid prosecution. 2. Myth: “I can give away $10,000 per year under Medicaid rules.” The Truth: This is a rule under federal gift tax law, not under Medicaid law. (Actually, the amount has changed to…
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