Changes That Affect Planning For Medicaid

The various posts have addressed the fact that there are annual changes that affect the projection of the date of Medicaid and Medicaid planning. These changes must be kept in mind as one projects the probable date for Medicaid (see Post 7, “Rules of Medicaid Eligibility”). The changes discussed include the following:

1. The community spouse resource allowance maximum and minimum, which changes the first of every year effective January 1. Currently, the maximum is $109,560 and the minimum is $21,912 (see Post 50 for further discussion of the rules governing such changes).

2. Also, the penalty rate for transfers changes annually on the first of any given year retroactive back to November 1 of the prior year (see Post 51 for this topic in greater detail).

3. The income cap, which currently is $2,022, is particularly relevant with respect to Medicaid waiver programs which also change annually.

4. Although not previously discussed, but particularly significant, is the fact that the costs of nursing home care also change annually. Therefore, if you are anticipating eligibility in the next calendar year, this change or anticipated change must be kept in mind.

5. The amount the potential applicant receives for social security increases each year in a percentage equal to the COLA.

6. The pension that the potential applicant receives may or may not increase annually and this should also be considered.

7. The pension and social security payments and their effect on post-eligibility Medigap insurance are discussed extensively in Post 1. That is, planning not only is to be considered through the date of eligibility, but with respect to several issues, including Medigap insurance, is to continue after eligibility.

8. Of course, post-eligibility planning must consider the fact that a Medicaid recipient would lose eligibility if resources exceed $2,000 on the first of any given month. Post-eligibility planning also is stressed in Post 13 which discusses the fact that the community spouse is not limited by the community spouse resource allowance after the date of eligibility of applicant.

Disclaimer: This article does not constitute legal advice and each person may have unique facts for which legal consultation may be necessary.

© May 2009, Post 84