What does that mean in simple terms?
Currently, an applicant can transfer any amount of money to anyone or a trust and become financially eligible the very next month. That means applicants will be able to receive home care services quickly.
However, beginning October 1, if an applicant transfers assets to anyone other than their spouse, such as their children or a trust, they will be penalized for the transfer. That means disqualification for a period of time.
Presently, the penalty rule Medicaid is speculated to impose is the nursing home regional rates. In New York City, if the applicant transfers $128,440, Medicaid will impose a penalty period of approximately 10 months.
During these ten months, applicants will have two options: pay privately
for the home attendant or seek a Medicaid professional to save approximately 50 percent of the assets.
It is strongly suggested that a potential applicant who may not presently need or require home care services apply before October 1, and capitalize on the present regulation and suffer no consequences.
The only positive aspect about the change in the law is that the penalty cannot exceed two-and-a-half years.
Jack Lippman is the founder of Elder Care Services in Forest Hills. Learn more at eldercareservicesny.com.