When an individual applies for Medicaid, the State conducts a “look back” to find transfers of assets for 60 months prior to the date the individual is institutionalized or, if later, the date he or she applies for Medicaid. All transfers made by the applicant or the applicant’s spouse subsequent to January 1, 2010, whether from an individual or to an individual or from a trust or to a trust, have a five year look-back period. These provisions apply when assets are transferred by individuals…
Insurance Conversion, Medicaid, Senior Life Insurance
“The two most important driving forces for the federal budget are the aging of the U.S. population and rapidly rising health-care costs.” – Federal Reserve Chairman Ben Bernanke Law makers from both sides of the aisle have come together to create a “Super Committee” comprised of six Democrats and six Republicans, half come from the House of Representatives and half come from the Senate. The members of the Super Committee are tasked with finding at least $1.5 Trillion in budget cuts over 10 years….
Medicaid, Medicare, Senior IssuesMedicaid in particular has become a serious problem for the states. It funds at least 2/3 of all spending for nursing home care and is the primary payer for long term care services in the United States. Unlike Social Security and Medicare, seniors do not automatically qualify for Medicaid at age 65 and instead must qualify based on income and assets at indigent levels. Many seniors follow a “spend down” path to get rid of money and assets so that they can qualify. Since the…
Cost of Care, Medicaid, Senior IssuesIn light of massive budgetary shortfalls in many states, a letter was sent from U.S. Health and Human Services Secretary Kathleen Sebelius to governors on Thursday listing ideas for reducing Medicaid costs without making drastic cuts across the board. Among the suggestions were taking steps to reduce fraud, selectively reducing benefits and reducing the overuse of expensive prescription medications. Although all the suggestions are reasonable, governors indicated that they would not do enough to help make budgetary ends meet. A number of states are still…
Medicaid, State Health CareState Medicaid programs underfunded nursing homes by $5.6 billion last year. They paid an average of $7.17 per hour, per patient, which is less than the minimum wage of $7.25 per hour, according to a new study. Such a shortfall is not acceptable, especially as the system prepares for an influx of baby boomers, according to Mark Parkinson, president and CEO of the American Health Care Association, which released the study. The report, compiled by the research firm Eljay, found that states with the largest…
Medicaid, Nursing HomeA report tracking Medicaid spending going back over the last seven years showed that Medicaid underfunded payments for services to all patients by $14.17 everyday in 2009. Projections are that this alarming Medicaid underfunding trend will get worse in 2010 and 2011. The economic crisis has robbed state budgets of funds available to support Medicaid funded programs and as a result there was a national deficit of almost $5 billion. Medicaid funds at least 2/3 of all spending for nursing home care. Spending shortfalls of…
Medicaid, Senior Budget Cutsby Chris Orestis, Life Care Funding Published July, 2009: New York State Bar Association Elder Law Journal Medicaid Eligibility Life insurance polices are unprotected assets and state Medicaid programs expect any policy with cash value beyond a minimal amount to be surrendered for medicaid eligibility. Those proceeds would then be spent as a medicaid spend down on care before Medicaid eligibility and payments would begin. Instead of surrendering a policy for minimal cash value, the owner could instead receive considerably more through a life settlement. The use…
Life Insurance Settlements, Medicaid, Senior Life InsuranceMembers of the U.S. Senate have been working overtime through the weekend to get the Stimulus package, voted on in the House of Representatives, back in line with the level President Obama had requested. The $920 billion level that the House passed, was $100 billion more than where the President and the Senate want it to be. Key in the bill is how much should be spent on Medicaid, and how to divide that money across all of the states. Medicaid, which is the primary…
Health Care for Seniors, Medicaid“This is not the time for business as usual,” AARP CEO Bill Novelli said at a press briefing. “It is time to demonstrate bold leadership, to take our agenda to the people and our nation’s leaders, to demand change and to work hard to bring about that change.” And with that, the AARP, representing more than 40 million Americans over the age of fifty, put the incoming Obama administration and the next Congress on notice that they would be playing a very active role in…
AARP, Elder Care, MedicaidIn response to the economic slump, growth of the Baby Boom population and pressure on state budgets, the federal government will allow states to begin charging premiums and increasing co-pays for those on Medicaid. This is another warning sign to seniors and their families that they need to be preparing to take on more and more of the financial burden to cover the costs of senior housing and long term care. As the increasing population of Baby Boomers and seniors hits in concert with a…
Cost of Care, Medicaid