Things to Consider When Filing a Medicaid Application for the Elderly

There are many factors that determine whether a Medicaid Application for the Elderly is successful.  The Department of Children and Families is the organization that reviews and either approves or denies Medicaid Applications for the Elderly.

Factors to Consider When Filing a Medicaid Application for the Elderly:

The Department of Children and families (DCF) has income and countable asset limits for applicants.  In 2024, the income limit is $2,829, and the countable asset limit is $2,000 for an individual applicant, $3,000 for a married couple that are both applying, and $2,000 for the applicant and $154,140 for the non-applicant spouse if married.  For many individuals seeking to file a Medicaid Application for the Elderly, this is already enough to cause confusion.

The rules do not stop there. DCF looks at the 5 years (60 months) prior to application to see if any gifting has occurred. DCF looks at money given away, assets sold for less than fair Market Value (FMV), etc. DCF is concerned that a potential applicant will try to dispose of money in order to get below the countable asset limit.  If DCF determines that gifting has occurred, a potential penalty period may ensue that pushes back the date that benefits begin after a Medicaid Application for the Elderly is filed. 

The penalty divisor in 2024 is $10,300.  This is the amount that DCF figures an average skilled nursing facility will cost per month.  If the total gifting over the 5 years prior to application is equal to or greater than $10,300 an ineligibility period occurs.  The formula for calculating this ineligibility period is

(aggregate gifting/$10,300=months of ineligibility). There are no partial months of ineligibility, so it is always rounded down.  This can certainly cause problems in regard to a Medicaid Application, because situations do happen where the gifting is enough to cause at least a month of ineligibility.

Fortunately, steps can be taken to correct the gifting so that it does not cause an issue for a Medicaid Application for the Elderly.  Beyond the basic approach of returning the gifted amount, the other strategies to correct gifting are not widely known, so it is advisable to speak to an expert when trying to correct gifting so that it does not interfere with a Medicaid Application for the Elderly.

When an individual or couple that wishes to submit a Medicaid Application for the Elderly is over the countable asset limit, there are many protection strategies that can be used to convert the assets from the countable category to the non-countable/exempt category for qualification purposes.

Steps can also be taken to restructure income so that it meets the qualification criteria for a Medicaid Application for the Elderly.

Over to You:

Platinum Benefit Services has been obtaining Medicaid Application for the Elderly approvals for over 27 years and has obtained over 14,000 approvals.  Over that time, we have gained unmatched expertise in the field which translates to unmatched results for you or a loved one.  If you want to know you are in the best hands, contact us today!