Method For Increasing Community Spouse Resource allowance

Method for Increasing the Community Spouse Resource Allowance

The community spouse resource allowance, which is the amount of resources that the community spouse may have at the time of eligibility of the applicant has been given a broader interpretation by the county boards and provides an opportunity for protecting a greater amount. For example, we have defined the community spouse resource allowance as being determined at the first moment of the first month of continuous institutionalization at a hospital or a long-term care facility (see particularly Post 8).

However, Medicaid is allowing this “snapshot” to be taken prior to the above dates if the individual is at home and is paying for his or her care to a homecare provider of such services like an aide or a licensed practical nurse. Therefore, assume that a person enters a nursing home with spousal assets of $80,000. The community spouse resource allowance would be $40,000. However, further suppose the individual has been cared for at home for the last two years and at the first day of the first month of homecare assets of the husband and wife total $300,000. The individual then enters a nursing home with the above-referenced $80,000. The community spouse resource allowance based upon resources of $300,000 at the first day of the first month of homecare, would be $109,560. Therefore, the person would immediately qualify for Medicaid and, have expended a substantial portion of the protected amount.

Awareness of this extended interpretation would allow the individual to decide to go into the nursing home at an earlier date. For example, if the individual entered the nursing home when the applicant had $2,000 and the community spouse had $109,560, the community spouse resource allowance having been determined at a much earlier date at $109,560, would allow this individual to now immediately qualify for Medicaid.

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 82