Do I have to “spend down” the money on medical care?
No. This is perhaps one of the most often given pieces of false information. You are allowed to spend your money on reasonable personal items, home improvements, a new car, buy a house, purchase irrevocable final arrangements, and small life insurance policies.
What are the limits on purchasing personal items for Medicaid spend down?
Keep it reasonable. There is a case on the books from the east coast on purchasing a $75,000 diamond ring. That purchase was ruled as an unreasonable and perhaps fraudulent purchase of jewelry. This doesn’t mean that you can’t purchase jewelry, but keep it in the “reasonable” range. This doesn’t necessarily mean you have to buy costume jewelry.
A middle of the road funeral in this area of Arkansas will run about $9,000 pre-paid, for everything including the service, liner, opening and closing, flowers, escort, etc.
What is the limit on how much cash I can have to qualify for Medicaid?
As of August of 2015, the upper limit appears to be $119,220. But, Arkansas is a keep one-half state. For example, if Mr. and Mrs. Medicaid have $120,000, the spouse at home gets to keep $60,000 and the spouse in the home gets to keep $2,000. Then they would have to spend down $58,000.
How much cash can the spouse in the institution have to qualify for Medicaid?
This one has been firm for many years. The spouse in the institution can have $2,000. This number is the original figure and has never been adjusted for inflation.
How far back does Medicaid examine my finances?
5 years. Any gifts made in that 5 years will count against you in what is called a penalty period.
How do I know how long the penalty period is?
In Arkansas, divide the total amount of the gifts by $5,168 (as of August of 2015). That gives you months and days of the penalty period.
In Arkansas, can I get rid of the Medicaid penalty period by leaving the institution?
No. The regulation is clear that leaving and coming back does not stop the penalty period.
from DeWitt Law Firm, PLLC http://ift.tt/219Wtib
from DeWitt Law Firm, PLLC
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