Medicaid Mistakes
Common Medicaid Mistakes
The Medicaid (i.e. Medical Assistance) process is very complex. At its core is the issue of making sure certain asset levels are in place. In order to be eligible for Medicaid, the applicant must have no more than $2,500 in countable assets. But, often the issue is when do you need to have $2,500 in countable assets? And, what is a countable asset? It is easy to make Medicaid Mistakes. The result of making a mistake can be disastrous.
Medicaid Mistakes: Timing of $2,500 in Countable Assets
The applicant must have no more than $2,500 in countable assets as of the last day of the month prior to seeking eligibility. We often advise clients to make sure the applicant has no more than $2,000 in countable assets. That leaves some wiggle room. If you are one penny over $2,500, then you are ineligible for the entire month. Given that nursing homes cost $10,000 to $13,000/month, that is a costly mistake. Often clients get nervous when a parent’s assets exceed $2,500 in a given month. The issue is not the size of the assets exceeding $2,500 during the month. The issue is what is the balance at the end. One of the last things you want to do is to do an electronic transfer at the end of the month to pay a bill at the last second. The problem is that while you may initiate the electronic transfer at the end of the month. However, the transaction may post on the 2nd or 3rd of the month. That is an overscale issue that is going to cost you another $10,000 to $13,000 in an extra month of nursing home payment.
Medicaid Mistakes: What is a Countable Asset?
In short, a countable asset is anything you can liquidate to pay the nursing home. But, there are a good number of exceptions. One exception is a car. A car is a non-countable asset. But, there is an exception. A luxury automobile is a countable asset. What exactly is a luxury automobile is not defined. Boats are countable assets, regardless of value. Personal effects are generally not countable assets unless you have a valuable collection. Again, what is a valuable collection is not defined. If you own more than two burial plots, the third burial plot is a countable asset. The list goes on and on. Suffice it to say, there are many nuances to a Medicaid application.
What if I make a Mistake?
If you make a mistake on the Medicaid application, the result will be disastrous. The issue is that it is not uncommon for an application to take several months to process. If you made the mistake on the initial application and then three months later you are denied. Then, that means for three months, Medicaid will not pay the nursing home. If Medicaid does not pay the nursing home, who will? That is when the nursing home starts to place pressure on the family to pay. Or, they will start the eviction proceedings. Of, they will go after the person who mistakenly signed the nursing home contract in their own name. It is important to contact our firm to assist you in this process. It is easy to make Medicaid mistakes. Even if you make a mistake, we may be able to help.