Medicaid Applications

Call 973-577-6010 For a Free Initial Consultation

It is critical to evaluate if/when a person will be eligible before filing the the Medicaid Application. If not, the information volunteered could result in a denial and longer period of ineligibility than assessed. As noted above, the Medicaid Application is extensive and should never be filed before seeking legal advice or representation.

As an example of the complexity, the application requires production of monthly financial statements for every account in which the applicant had an interest for the past 5 years and an explanation for any deposit or withdrawal over $500, information not readily available.

Applicants then learn of the "deeming rule" whereby all of the resources of both spouses are countable on the application for either spouse, even "second marriage" spouses. The deeming rule divides the spousal assets 50/50 to determine the amount of spend down for the infirmed spouse before Medicaid eligibility; however, the 50% share allowed to the non-infirmed (community) spouse cannot exceed $120,000.00 in 2016. Any amount beyond that is added to the applicant spouse's spend down before Medicaid eligibility. Next there is a monthly income allowance for the community spouse of $2202 but no more than $2980.

Other little known, yet potentially devastating, Medicaid Application facts are:

  1. The cash value of life insurance policies beyond $1,500.00 face value is considered an available resource countable by Medicaid. Often Medicaid will advise the applicant they must liquidate the policy for its cash value. That is not correct! If a $10,000 policy has a cash value today of $5,000 then cash in forfeits $5,000 of the death value!
  2. Once Medicaid eligible, all income of the applicant must be signed over to Medicaid (less possible spousal allowance due to the community spouse).
  3. Either spouses' IRA's and their home (unless the community spouse resides there) are countable Medicaid resources which must be spent down before eligibility. An experienced CELA can soften the impact of these harsh rules.

For a free initial consultation regarding Medicaid Applications, call us at 973-887-4254 or click here to contact us online.