ULTRA TRUST® – Medicaid Benefits
“The Deficit Reduction Act of 2005 (S.1932) [DRA]” signed by the President on Feb. 8, 2006. The Act established a June 30, 2006 deadline for the Secretary of Health and Human Services (HHS) to release regulations for states to come in compliance with the new law.
Among other provisions, … the new law places severe new restrictions on the ability of the elderly to transfer assets before qualifying for Medicaid coverage of nursing home care.
The law extends Medicaid’s “lookback” period for all asset transfers from (3) three to (5) five years, and changes the start of the penalty period for transferred assets from the date of transfer to the date when the individual transferring the assets enters a nursing home and would otherwise be eligible for Medicaid coverage.
In other words, these new Medicaid rules are specifically designed to “impoverish the healthy spouse.”
This is an extreme. If you’re approaching the Medicaid Nursing Home Spend-down Provisions…you have to pay attention to these new very restrictive regulations. …The healthy spouse can find him/herself out in the street. If you have parents in this predicament, YOU better take note because you will end-up supporting your parents, specifically when they now have substantial assets.
Helpful resources: Helpful next steps often include Medicaid Irrevocable Trust, , and official Medicaid eligibility guidance when comparing planning options.
