Before Medicaid eligibility is established, Medicaid applicants must meet resource thresholds based on Medicaid eligibility rules. There are two basic areas of concern that determine if and when eligibility will occur:
What is the current value of the applicants’ available resources?
A five year history will determine how the applicant’s resources arrived at the current value (for a comprehensive list of resources click here)
•This includes active and inactive accounts
•All spousal resources
The five year look back period allows Medicaid to fully asses the circumstances surrounding the current need for assistance. If Assets have been transferred for less then fair market value a penalty period may be assessed.
If the applicant has a community spouse the Medicaid eligibility criteria may be different. There are often exemptions that allow spouses to keep resources. Making a mistake and overspending resources may result in the community spouse losing thousands of dollars of what could otherwise have been funded through Medicaid.
In order to prepare appropriately for Medicaid eligibility it is critical to understand Medicaid Resource rules. Common mistakes can leave applicants vulnerable to periods of ineligibility.
Contact Senior Planning Services for you free comprehensive Medicaid eligibility consultation. Call us today.
Learn about other common Medicaid concerns: