Tax Act Brings Changes to SSI / Medicaid Treatment of Refunds, Tax Credits
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Read moreBy a vote of 52-48, the U.S. Senate has approved a critical amendment striking massive Medicaid cuts from the budget proposed by President Bush. The amendment, offered by Sens. Gordon Smith (R-OR) and Jeff Bingaman (D-NM), restores $15 billion in Medicaid spending over five years to the 2006 budget. In place of the cuts, the amendment establishes a bipartisan commission that would report back with suggested changes in the program in a year.
All Democratic senators supported the amendment. They were joined by six Republicans in addition to Sen. Smith: Norm Coleman (MN), Lincoln Chafee (RI), Susan Collins (ME), Mike DeWine (OH), Olympia Snowe (ME), and Arlen Specter (PA).
"The seven Republicans who voted for the amendment deserve special thanks '“ they were under tremendous pressure to vote with the Senate leadership," the National Citizens' Coalition for Nursing Home Reform said in a statement (NCCNHR). In a letter to Senators before the vote, NCCNHR Executive Director Alice H. Hedt wrote: "Medicaid is the only source of long-term care assistance for almost 1 million frail elderly and disabled nursing home residents, and any changes to the program should be driven by thoughtful and well-considered policy and not by arbitrary reductions in funding."
The Associated Press characterized the vote as "an embarrassing setback to President Bush and Republican leaders." The proposed Medicaid cut was the centerpiece of the administration's deficit reduction effort, and it had lobbied hard to line up enough votes to defeat the amendment.
The House of Representatives has approved a budget resolution that slashes $20 billion from Medicaid. However, the Senate's vote now casts doubt on whether the House and Senate will be able to reach an agreement on the budget next month. If the two houses cannot agree, items in the budget like Medicaid will have to be voted on separately and would be subject to Senate filibuster.
For an Associated Press/Business Week article on the vote, click here.
For a Washington Post article on the vote, click here.
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Read morePromissory notes can be a valuable tool in Medicaid planning, as illustrated by a recent federal district court case.
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.
READ MOREMost states have laws on the books making adult children responsible if their parents can't afford to take care of themselves.
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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.
READ MOREMedicare's coverage of nursing home care is quite limited. For those who can afford it and who can qualify for coverage, long-term care insurance is the best alternative to Medicaid.
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READ MOREDistinguish the key concepts in estate planning, including the will, the trust, probate, the power of attorney, and how to avoid estate taxes.
READ MORELearn about grandparents’ visitation rights and how to avoid tax and public benefit issues when making gifts to grandchildren.
READ MOREUnderstand when and how a court appoints a guardian or conservator for an adult who becomes incapacitated, and how to avoid guardianship.
READ MOREWe need to plan for the possibility that we will become unable to make our own medical decisions. This may take the form of a health care proxy, a medical directive, a living will, or a combination of these.
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READ MOREUnderstand the ins and outs of insurance to cover the high cost of nursing home care, including when to buy it, how much to buy, and which spouse should get the coverage.
READ MOREWe explain the five phases of retirement planning, the difference between a 401(k) and an IRA, types of investments, asset diversification, the required minimum distribution rules, and more.
READ MOREFind out how to choose a nursing home or assisted living facility, when to fight a discharge, the rights of nursing home residents, all about reverse mortgages, and more.
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READ MORELearn how a special needs trust can preserve assets for a person with disabilities without jeopardizing Medicaid and SSI, and how to plan for when caregivers are gone.
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