Dependency Exclusion Revisited

Post 14 discusses the dependency exclusion for the home of a Medicaid applicant. That is, if a dependent relative (as defined in Program Instruction Number 85-8-9), resides in the applicant's home, the home is excluded for Medicaid purposes.

The key to this exclusion is that there is no time period limitation for the dependent relative to reside in the applicant's home. Therefore, if it is contemplated that an individual may be going into a nursing home, a dependent relative (i.e. a child) can move into the home. Unlike the exclusion from the transfer rules, which requires two years of care (see Post 34), the time limitation on dependency does not apply.

Moreover, if the dependent individual is a relative (would be a relative by definition), the Medicaid lien does not apply upon the death of the Medicaid applicant. The lien would only apply at such time as the family member dies, sells or moves out of the primary residence (see N.J.A.C. 49:14.1).

As indicated in Post 14, financial dependency is easy to prove. For example, even a working child could be financially dependent if such child could not afford an abode where the cost is comparable to recipient's primary residence.

Disclaimer: This article does not constitute legal advice and each person may have unique facts for which legal consultation may be necessary.
© June 2011, Post 148