The 9 most common myths of Medicaid and Medicaid Planning
•Descargar como PPT, PDF•
1 recomendación•2,451 vistas
Presented to the Rhode Island chapter of the Alzheimer's Association on Oct. 3, 2013. This talk was Part 4 of the "Getting Started Education Series", given at The Highlands on the East Side, in Providence, RI.
Recomendados
Recomendados
Más contenido relacionado
La actualidad más candente
La actualidad más candente (20)
Similar a The 9 most common myths of Medicaid and Medicaid Planning
Similar a The 9 most common myths of Medicaid and Medicaid Planning (20)
Último
Último (20)
The 9 most common myths of Medicaid and Medicaid Planning
- 1. The 9 most common myths ofThe 9 most common myths of Medicaid & Medicaid PlanningMedicaid & Medicaid Planning Mark B. Heffner, Esq.Mark B. Heffner, Esq. Heffner & AssociatesHeffner & Associates 615 Jefferson Boulevard615 Jefferson Boulevard Warwick, Rhode IslandWarwick, Rhode Island www.hefflaw.comwww.hefflaw.com 401-737-1600401-737-1600
- 2. DISCLAIMERDISCLAIMER • Presentation based on CURRENT RHODE ISLAND Regulations and Policy, which are subject to change at any time. • Medicaid eligibility is STATE-SPECIFIC. Even variations within State depending on regional office • General presentation for educational purposes only. No substitute for individual consultation with COMPETENT Medicaid lawyer in particular State.
- 3. HEFFNER & ASSOCIATES ELDER LAW MYTH #1 “MEDICARE AND BLUE CROSS WILL COVER IT” • Medicare & Medigap supplements such as Blue Cross Plan 65 and Blue Chip only small fraction of nursing homes residents at any given time. • Many residents never receive Medicare coverage. • For those who do, most people are NOT covered for the full 100 days and many have substantial co-pays during the period they receive skilled benefits.
- 4. HEFFNER & ASSOCIATES ELDER LAW MYTH #2 “IT’S TOO LATE—WE SHOULD HAVE DONE THIS 5 YEARS AGO” • It is not too late to pursue effective asset protection planning, even after someone enters a nursing home. • Plan may include purchase of “exempt” assets (“spenddown”), transfers which do not create ineligibility, calculated transfers. Text
- 5. HEFFNER & ASSOCIATES ELDER LAW MYTH #2 “IT’S TOO LATE—WE SHOULD HAVE DONE THIS 5 YEARS AGO” • Examples for single people: • Plan may include purchase of “exempt” assets (“spenddown”), transfers which do not create ineligibility, calculated transfers (e.g. “reverse half a loaf”)
- 6. HEFFNER & ASSOCIATES ELDER LAW MYTH #2 “IT’S TOO LATE—WE SHOULD HAVE DONE THIS 5 YEARS AGO” • Significant opportunities for married couples—e.g., purchase of Medicaid- qualifying annuities, revisions to community spouse estate plan.
- 7. HEFFNER & ASSOCIATES ELDER LAW MYTH #3 “I CAN GIVE AWAY $10K PER YEAR TO ANYONE AND IT’S OK” • Annual exclusion gifts--now $14/year-- are NOT exempted transfers for Medicaid eligibility • Rather, generally will create a period of ineligibility.
- 8. HEFFNER & ASSOCIATES ELDER LAW MYTH #4 “THE STATE WILL MAKE ME SELL MY HOUSE TO QUALIFY FOR MEDICAID” • You can own a principal residence (with equity of less than $525K) and still qualify for Medicaid, provided you declare an intention to return home. • No recovery until after death, and then only against recipient’s probate estate. • However, though permitted to retain principal residence, no income may be retained (other than portion of rental income) to pay house expenses.
- 9. HEFFNER & ASSOCIATES ELDER LAW MYTH #5 “MY KID’S NAME IS ON ALL OF MY ACCOUNTS, SO 1/2 IS SAFE” • Except in the case where the money truly belongs to the child or other co-owner, 100% of the bank account will be exposed for spend-down. • There are some exceptions for brokerage accounts, stock and real estate provided the penalty period has passed for adding the name.
- 10. HEFFNER & ASSOCIATES ELDER LAW MYTH #6 “THE STATE WON’T MAKE ME SELL MY BEACH HOUSE/REDEEM MY CD/ANNUITY …TO QUALIFY” • Except for a limited number of “exempt” resources (e.g., principal residence (equity less than $525K), irrevocable burial contract), all other assets are deemed “available” for spenddown regardless of whether there is a penalty to redeem the asset or the asset cannot be immediately liquidated. • AT BEST, may be given time to liquidate non-cash or cash-equivalent resources.
- 11. HEFFNER & ASSOCIATES ELDER LAW MYTH #7 “AS A SPOUSE, I GET TO KEEP ANYTHING IN MY NAME ALONE” • The spousal allowance is calculated by totaling all of the available marital assets (regardless of which spouse’s name is on the asset) and dividing by two. • The Community Spouse is allowed to keep one-half of the total joint resources up to a maximum of $115,920.
- 12. HEFFNER & ASSOCIATES ELDER LAW MYTH #8 “MY ANNUITY IS PROTECTED FROM NURSING HOME COSTS” • An annuity must be specifically designed in order to be Medicaid qualifying. • Elements: irrevocable cannot be surrendered, transferred, collaterally assigned, or returned for a return of the premium paid, name State as beneficiary.
- 13. HEFFNER & ASSOCIATES ELDER LAW MYTH #8 “MY ANNUITY IS PROTECTED FROM NURSING HOME COSTS” • Very unlikely that annuity purchased prior to individual’s nursing home placement will pass muster.
- 14. HEFFNER & ASSOCIATES ELDER LAW MYTH #9 “IF I QUITCLAIM MY HOUSE TO MY KIDS, IT’S PROTECTED” • Unless SPECIFCALLY exempted, the transfer of ANY asset is subject to a 5 year look-back period. • In addition, outright transfer of interest in home produces negative tax consequences, exposure of home to claims of kids’ creditors, loss of control by parent in most important asset.
- 15. HEFFNER & ASSOCIATES ELDER LAW *Copyright 2013, Mark B. Heffner, Esq. Heffner &Associates 615 Jefferson Blvd Warwick, RI 02886 401-737-1600 mheffner@hefflaw.com www.hefflaw.com