Is a Medicaid Asset Protection Trust Portable if We Move to a Different State?
If we get a Medicaid asset protection trust in one state, what would happen if we moved to a different state? Is this kind of...
Read moreA new report by the Government Accountability Office (GAO) reinforces claims that the level of assets being transferred by the elderly are relatively insignificant and that changes to Medicaid's asset-transfer rules would have a trivial effect on the program's budget.
The Bush administration's fiscal year 2006 budget proposes to save $1.5 billion over 5 years by tightening existing rules related to asset transfers. To evaluate this claim, three Democratic members of Congress asked the GAO to provide data on transfers of assets by elderly individuals. The GAO relied on data from a 2002 survey that looked only at cash transfers, not transfers of property and or other non-cash assets. However, the cash transfers identified in the survey could have been for any purpose, not just qualifying for Medicaid long-term care services.
The GAO found that about 22 percent of eldery houseolds made transfers. The median amount transferred was $3,000 and the average was $8,800. In general the higher the households' income, the more likely it was to have transferred assets. However, even in households in the highest income and resource bracket -- incomes greater than $24,000 and resources greater than $51,500 -- the average amount transferred was $12,010 and the median amount was $4,000. More than 80 percent of elderly households had annual incomes of $50,000 or less, the study found.
According to the study, households with a disabled elderly individual were less likely to transfer cash than households without a disabled elderly member, even though the disabled are more likely to need long-term care. Among households with a household member who was limited in three or more activities of daily living (ADL), approximately 13 percent transferred assets; among non-disabled households, approximately 23 percent transferred assets.
The GAO study also suggests that no better data on the extent of asset transfers is likely to come from the states any time soon. GAO researchers looked at the information-gathering practices of nine states and found that none of the states track data on how frequently assets are transferred or the extent to which asset-transfer penalties are applied. The study found that the states generally relied on the information applicants supplied during the application process -- including the application, supporting documentation, and interviews -- to identify whether the applicant transferred assets.
To see the full study, "Transfers of Assets by Elderly Individuals to Obtain Long-Term Care Coverage," click here.
(The study is in PDF format. If you do not have the free PDF reader installed on your computer, download it here.)
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Read moreIn addition to nursing home care, Medicaid may cover home care and some care in an assisted living facility. Coverage in your state may depend on waivers of federal rules.
READ MORETo be eligible for Medicaid long-term care, recipients must have limited incomes and no more than $2,000 (in most states). Special rules apply for the home and other assets.
READ MORESpouses of Medicaid nursing home residents have special protections to keep them from becoming impoverished.
READ MOREIn addition to nursing home care, Medicaid may cover home care and some care in an assisted living facility. Coverage in your state may depend on waivers of federal rules.
READ MORETo be eligible for Medicaid long-term care, recipients must have limited incomes and no more than $2,000 (in most states). Special rules apply for the home and other assets.
READ MORESpouses of Medicaid nursing home residents have special protections to keep them from becoming impoverished.
READ MORECareful planning for potentially devastating long-term care costs can help protect your estate, whether for your spouse or for your children.
READ MOREIf steps aren't taken to protect the Medicaid recipient's house from the state’s attempts to recover benefits paid, the house may need to be sold.
READ MOREThere are ways to handle excess income or assets and still qualify for Medicaid long-term care, and programs that deliver care at home rather than in a nursing home.
READ MORECareful planning for potentially devastating long-term care costs can help protect your estate, whether for your spouse or for your children.
READ MOREIf steps aren't taken to protect the Medicaid recipient's house from the state’s attempts to recover benefits paid, the house may need to be sold.
READ MOREThere are ways to handle excess income or assets and still qualify for Medicaid long-term care, and programs that deliver care at home rather than in a nursing home.
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READ MOREMost states have laws on the books making adult children responsible if their parents can't afford to take care of themselves.
READ MOREApplying for Medicaid is a highly technical and complex process, and bad advice can actually make it more difficult to qualify for benefits.
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