MEDICAID PLANNING FOR MARRIED COUPLES  
TOPICS
  1. RECENT CHANGES IN THE MEDICAID LAWS IN 2006
  2. MEDICAID PLANNING FOR NURSING HOME CARE AFTER 2005
  3. KEY TO MEDICAID PLANNING - KNOWING THE LAWS
  4. WHEN AND WHY TO HIRE AN ELDER LAW ATTORNEY
  5. GLENN LAW OFFICES APPROACH TO MEDICAID PLANNING
   
RECENT CHANGES IN THE MEDICAID LAWS IN 2006  
Mr. Glenn has closely followed the Bush Administrations proposed budget cuts that included streamlining Medicaid benefit planning opportunities that were formerly targeted at helping the Middle-Class qualify for benefits to pay for Nursing Home care.

As of February 8, 2006 many Medicaid Planning opportunities used by many people have now been eliminated or disallowed. Below is a summary of the major changes affecting Medicaid Nursing Home applicants:

1. The look-back period for any gifts/transfers for less than fair market value is five (5) years.

2. Balloon annuities (used by many) are now countable transfers.

3. All annuities of the applicant must now name the State Medicaid program as first beneficiary, before a spouse (up to the amount Medicaid has provided benefits to the applicant)

4. All gifts are now going to result in a penalty, regardless of amount. A penalty is a period of time for which a person is not qualified to get Medicaid benefits.

5. The new law eliminates the rounding down that allowed so many people to make gifts. Now penalties are measured in days and months.

6. Prior to the new law, penalty periods were calculated starting with the month the gift was given. Now the penalty starts from the date of eligibility/application moving forward, not back.

7. It is still a federal offense to apply for Medicaid benefits before one is eligible. This is where many must be careful.

8. For those who were trying to do Medicaid plan on their own, the new law creates very complex issues as to eligibility now. Consultation with an elder law attorney is now a must prior to applying in order to avoid violating the federal laws on submitting an application when a person is in fact not eligible.

9. Prior law allowed unlimited amount to be sheltered from Medicaid in the applicant’s homestead. The new law places a cap on the value of the Homestead of a Medicaid applicant that can be shelter from Medicaid. It is $500,000 in 2006.

  
 
MEDICAID PLANNING FOR NURSING HOME CARE AFTER 2005  
The good news is that there are still Medicaid Planning opportunities for the middle-class. It is just more complex than it was in previous years.

There are still plenty of panning options available that will allow a married couple to retain assets in non-countable status and allow one spouse to still qualify for Medicaid to pay the nursing home.

1. Single premium annuities for the well spouse are still viable
2. Personal service contracts and care management contracts
3. Investment properties that pay income
4. Retain a going business concern required to sustain the family
5. Spending down on furnishing and other essential non-countable assets

Below is an example of a typical case Glenn Law Offices would handle:

  • Couple is married over 50 years
  • Husband develops Alzheimer's
  • They owned a home worth $190,000 and investments totaling over $200,000. Glenn Law Offices developed a Medicaid Plan that allowed wife and family members to retain immediate access to funds while also qualifying husband for Nursing Home Benefits.
  • The family saved thousands per month in nursing home costs.
  
 
KEY TO MEDICAID PLANNING - KNOWING THE LAWS  
The primary issue is knowing how to title assets, what investments are legal, when to transfer them, who to transfer them to, and how much can be transferred.

The laws related to Medicaid and other public benefits have now become even more complex.

Medicaid Planning is similar to Financial Planning.

There are many ways to accomplish the goal. The main objective is to place funds in the most appropriate place. Not just "sheltering" money in an annuity.

A good Medicaid Plan includes numerous planning techniques, not just one.

  
 
WHEN AND WHY TO HIRE AN ELDER LAW ATTORNEY  
In the context of Medicaid Planning, speaking with an Elder Law Attorney is appropriate when a person has assets ($2,000 of Medicaid "Countable Assets") or income in excess of the Medicaid allowable amount ($1,804 in 2006). This is where Medicaid Planning can result in a person having access to funds that otherwise would not be available but for the Planning.
  
 
GLENN LAW OFFICES APPROACH TO MEDICAID PLANNING  
Planning starts with Mr., Glenn utilizing his background in accounting to develop a client cash flow analysis making sure that the client has enough funds to pay his/her bills.

Glenn Law Offices Medicaid Planning services are focused on helping married couples where one spouse is suffering from the affects of Alzheimer’s of other forms of dementia.

Glenn Law Offices believes clients should think of the legal costs associated with retaining the firm as an "investment".

Legal guidance should be designed to save the Medicaid applicant money while preserving a quality of life for that applicant

Basic investment principals state that the return on any investment should exceed the initial investment. It is with this in mind, Glenn Law Offices approaches each potential client's case.

A potential client will not get an appointment unless Glenn Law Offices believes the firm can provide useful insights into the laws, and that the client could benefit from meeting with the firm to discuss Medicaid and the feasibility of Medicaid Planning.

Glenn Law Offices believes Medicaid Planning is a team effort.

Cases are selected based upon the potential client and Glenn Law Offices belief that they can work together to provide the highest quality of life for the Medicaid applicant and comfort to the applicant’s family.