The Dilemma of Caretaker Agreements

Agreements pursuant to which a Medicaid applicant can reimburse a child (i.e. Caretaker Agreements) have been discussed in Posts 6, 17, and 34. That is, a child can now be reimbursed if the payments to the child are deemed by the state to be "reasonable". This creates a dilemma as the state will not make an a priori decision regarding the validity of a caretaker agreement. The applicant runs a risk that the amount by which the child is compensated is not deemed by the state to be reasonable. In such event the excess payment to the child by the parent is deemed to be a penalizing transfer.

Therefore, it is important that counsel indicate in his letter that the validity of a Caretaker Agreement is not guaranteed as the state will only honor payments by the parent that are deemed to be "reasonable", and that the parties are at the mercy of the state.

I particularly call your attention to Post 52 in which I suggest the documents to be submitted to support a Caretaker Agreement.

Disclaimer: This article does not constitute legal advice and each person may have unique facts for which legal consultation may be necessary.
© January 2011, Post 129