As we mentioned in earlier emails, on October 1, 2020 applicants for Community Medicaid will be subject to a new look-back period of 30 months. When the law takes effect, non-exempt assets sold below fair market value, transferred to others, or simply given away within 30 months of your application date could result in a penalty period. During the penalty period you will be ineligible to receive Community Medicaid to pay for home care, private duty nursing, personal care, or the assisted living program (ALP).
Perhaps you are wondering what is meant by the term “exempt” assets? Medicaid divides assets into two classes: exempt and available. The transfer of exempt assets will not result in a penalty period or denial of benefits. Exempt assets for an applicant in New York include:
- $15,750 or less in cash/non-exempt assets if single. If married and both spouses require care, the asset allowance for the couple is $23,100.00
- One home is exempt (equity limit $893,000) if a spouse, a child under 21, or a disabled person resides in it
- One car. There is no specified equity limit on the car
- A life insurance policy if the policy’s face value is $1,500 or less
- Household goods and personal effects such as jewelry, heirlooms, furniture, etc.
- An irrevocable funeral trust. There is no specified dollar limit for this trust
Assets other than these are considered “available” and the improper sale, transfer, or gifting of them will be subject to penalty and a period of ineligibility for Community Medicaid.
Of course, you don’t have to worry about the 30-month look-back period, and any penalties that might be incurred for improper transfers made during that period, if you apply and are eligible for Community Medicaid before October 1, 2020.
Don’t delay. Contact us as soon as possible to protect your assets and obtain the care you need. We are offering you a FREE consultation until August 31, 2020.