Post #7 sets forth the requirements for Medicaid eligibility in terms of the resources an individual and/or a community spouse must have in order for an applicant to have eligibility. Resources refers to funds available to pay nursing home costs.
The transfer rules are determined with respect to "assets." The word "assets" refers to both resources and income. That is, 42 U.S.C. 1396p(c) refers to a disposition of assets giving rise to a penalty. That is a transfer of both resources and income triggers the penalty rules.
Pension and social security monies are income in the first month received, but if not utilized to pay the nursing home or other debts before the first day of the first month following receipt, constitute resources.
Therefore, it is important to note the distinction between assets and resources as the word "assets" constitutes both resources and income. The eligibility rules are defined in terms of resources, while the transfer rules are defined in terms of assets.
Disclaimer: This article does not constitute legal advice and each person may have unique facts for which legal consultation may be necessary.
© April 2011, Post 142
Monday, April 11, 2011
Wednesday, April 6, 2011
Negative Aspects of Inaccessible Resources
In Post 48, inaccessible resources are treated as excludable for Medicaid resource purposes. For example, a tenancy-in-common held by a Medicaid applicant with her sister is an inaccessible resource if the sister refuses to consent to a sale.
Notwithstanding, the definition of the Medicaid reimbursement rate is the outlay of Medicaid reduced by any continuing flow of income that the Medicaid recipient receives. If the tenancy-in-common were rented, one half the "net" rent would have to be used to defray the cost of Medicaid. Moreover, the property would be subject to the Medicaid lien upon the death of the Medicaid recipient.
Therefore, an excludable resource while being an advantage for Medicaid eligibility purposes, does have negative characteristics.
Disclaimer: This article does not constitute legal advice and each person may have unique facts for which legal consultation may be necessary.
© April 2011, Post 141
Notwithstanding, the definition of the Medicaid reimbursement rate is the outlay of Medicaid reduced by any continuing flow of income that the Medicaid recipient receives. If the tenancy-in-common were rented, one half the "net" rent would have to be used to defray the cost of Medicaid. Moreover, the property would be subject to the Medicaid lien upon the death of the Medicaid recipient.
Therefore, an excludable resource while being an advantage for Medicaid eligibility purposes, does have negative characteristics.
Disclaimer: This article does not constitute legal advice and each person may have unique facts for which legal consultation may be necessary.
© April 2011, Post 141
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