|
|
 |
On February 8th, 2006, President Bush signed the Deficit Reduction Act of 2005 which tightened Medicaid eligibility rules. The new look back period has been extended for the transfer of assets from 3 years to 5 years.
Medicaid will also deny coverage for Nursing Home Care to any applicant with home equity valued above $500,000 (up to $750,000 in some states). This law also specifies that the date the penalty period for asset transfer is the date that one becomes eligible for Medicaid, instead of, the date of the transfer of the asset.
Medicaid is a program that pays for medical assistance for certain individuals and families with low incomes and resources. This program became law in 1965 and is jointly funded by the Federal and State governments (including the District of Columbia and the Territories) to assist States in providing medical long-term care assistance to people who meet certain eligibility criteria. Medicaid is the largest source of funding for medical and health-related services for people with limited income. Some people, who are not poor, pay for long term care by means of Medicaid benefits. They do so by spending down (or getting rid of assets) - they spend nearly all their income and assets on care until they become poor, then Medicaid pays for their care. For most people, this is not a good solution to the problem of meeting their long-term care needs.
Rather, it has been used as an unattractive last resort for those who have no other options. Nonetheless, Medicaid is a common means of paying for long-term care in the US.
For example, in 2000 Medicaid paid about $32 Billion in nursing home expenses alone. Medicaid is a federal-state program; therefore, Medicaid limits vary by State. (See 2007 Medicaid Spend down limits by State).
Medicaid Spend Down Limits as of January 1, 2007
The table below gives the minimum assets and income each state allows nursing-home residents and their spouses to keep. The federal government sets new minimum and maximum amounts each year, but states can set their own minimum requirements at any level between the federal limits.
|
State
|
Your asset allowance
|
Your spouse's minimum asset allowance
|
Your personal- monthly - needs allowance
|
Your spouse's monthly - income allowance
|
|
Alabama*
|
$2,000
|
$25,000
|
$30
|
$1,650
|
|
Alaska*
|
$2,000
|
$101,640
|
$75
|
$2,541
|
|
Arizona*
|
$2,000
|
$20,328
|
$82.80
|
$2,541
|
|
Arkansas*
|
$2,000
|
$20,328
|
$40
|
$1,650
|
|
California
|
$2,000
|
$101,640
|
$35
|
$2,541
|
|
Colorado*
|
$2,000
|
$101,640
|
$50
|
$1,650
|
|
Connecticut
|
$1600
|
$20,328
|
$61
|
$1,650
|
|
Delaware*
|
$2,000
|
$25,000
|
$44
|
$1,650
|
|
District of
Columbia
|
$2,600
|
$101,640
|
$70
|
$2,541
|
|
Florida*
|
$2,000
|
$101,640
|
$35
|
$1,650
|
|
Georgia
|
$2,000
|
$101,640
|
$30
|
$2,541
|
|
Hawaii
|
$2,000
|
$101,640
|
$30
|
$2,541
|
|
Idaho*
|
$2,000
|
$20,328
|
$40
|
$1,650
|
|
Illinois
|
$2,000
|
$101,640
|
$30
|
$2,541
|
|
Indiana
|
$1,500
|
$20,328
|
$52
|
$1,650
|
|
Iowa*
|
$2,000
|
$24,000
|
$30
|
$2,541
|
|
Kansas
|
$2,000
|
$20,328
|
$30
|
$1,650
|
|
Kentucky
|
$2,000
|
$22,000
|
$40
|
$1,650
|
|
Louisiana*
|
$2,000
|
$101,640
|
$38
|
$2,541
|
|
Maine
|
$2,000
|
$101,640
|
$40
|
$1,650
|
|
Maryland
|
$2,500
|
$20,328
|
$50
|
$1,650
|
|
Massachusetts
|
$2,000
|
$101,640
|
$60
|
$1,650
|
|
Michigan
|
$2,000
|
$20,328
|
$60
|
$1,650
|
|
Minnesota
|
$3,000
|
$25,247
|
$72
|
$1,650
|
|
Mississippi*
|
$2,000
|
$101,640
|
$44
|
$2,541
|
|
Missouri
|
$1,000
|
$20,328
|
$30
|
$1,650
|
|
Montana
|
$2,000
|
$20,328
|
$40
|
$1,650
|
|
Nebraska
|
$4,000
|
$20,328
|
$50
|
$2,541
|
|
Nevada*
|
$2,000
|
$20,328
|
$35
|
$1,650
|
|
New Hampshire
|
$2,500
|
$20,328
|
$50
|
$1,650
|
|
New Jersey
|
$2,000
|
$20,328
|
$35
|
$1,650
|
|
New Mexico*
|
$2,000
|
$31,290
|
$49
|
$1,650
|
|
New York
|
$4,150
|
$74,820
|
$50
|
$2,541
|
|
North Carolina
|
$2,000
|
$20,328
|
$30
|
$1,650
|
|
North Dakota
|
$3,000
|
$101,640
|
$50
|
$2,541
|
|
Ohio
|
$1,500
|
$20,328
|
$40
|
$1,650
|
|
Oklahoma*
|
$2,000
|
$25,000
|
$50
|
$2,541
|
|
Oregon*
|
$2,000
|
$20,238
|
$30
|
$1,650
|
|
Pennsylvania
|
$2,400
|
$20,328
|
$30
|
$1,650
|
|
Rhode Island
|
$4,000
|
$20,328
|
$50
|
$1,650
|
|
South Carolina*
|
$2,000
|
$66,480
|
$30
|
$1,662
|
|
South Dakota*
|
$2,000
|
$20,000
|
$30
|
$1,650
|
|
Tennessee
|
$2,000
|
$20,328
|
$40
|
$1,650
|
|
Texas*
|
$2,000
|
$20,328
|
$60
|
$2,541
|
|
Utah
|
$2,000
|
$20,328
|
$45
|
$1,650
|
|
Vermont
|
$2,000
|
$101,640
|
$47.66
|
$1,650
|
|
Virginia
|
$2,000
|
$20,328
|
$30
|
$1,650
|
|
Washington
|
$2,000
|
$40,000
|
$41.62
|
$1,650
|
|
West Virginia
|
$2,000
|
$20,328
|
$50
|
$1,650
|
|
Wisconsin
|
$2,000
|
$50,000
|
$45
|
$1,935
|
|
Wyoming*
|
$2,000
|
$101,640
|
$50
|
$2,541
|
* These are "income cap" states. If your income is higher than $1,809 a month, you cannot qualify for Medicaid even after spending down all assets, unless you set up a Miller trust.
Effective 01/01/07
To learn more about Medicaid go to www.cms.hhs.gov/medicaid.
|
|
