In a previous article, we discussed 529 plans as a way to help contribute toward college tuition. In this article, we provide some food for thought before you help pay for your loved one’s educational costs.
A number of my clients have experienced a gap in their Medicaid coverage because they moved from one state to another to be closer to their families. It is important to remember that Medicaid is not portable. You cannot simply transfer it from one state to another. For example, if you are receiving Medicaid benefits in New York and you move to another state, the New York State Medicaid eligibility will be lost. Meanwhile, there could be a considerable delay before you are enrolled in Medicaid and start to receive benefits in your new home state.
In a previous blog, we discussed the important documents—healthcare proxy, living will, and power of attorney—that allow you to appoint people to make healthcare, legal, and financial decisions on your behalf should you become incapacitated. If you have not finalized those documents before you become mentally or physically unable to make decisions, then a guardianship proceeding will take place.
Russo Law Group, P.C. is pleased to share this article on behalf of guest author Don Poole.
It is becoming more competitive to get access to the best long-term care providers, as 10,000 Baby Boomers turn age 65 every day. Statistics show that 70% or more of people over the age of 65 will require long-term care services. Today there are 10,000,000 people receiving long-term care in the United States. People with the ability to afford private pay care are typically given preferential access to the best care providers and locations; while those on Medicare and Medicaid are given little choice as to where they can go and will usually have to share a room with another person.
Tremendous pressure is being placed on tax payers to cover Medicare and Medicaid budgets because the demand for long-term care services is growing rapidly at the same time costs are rising every year. Courts and the government are doing more to push financial responsibility to cover their own care back on families. For example, the requirements to qualify for Medicare and Medicaid funded long-term care services continue to become more stringent; states have the right to pursue families in probate court to recover funds spent by Medicaid if they discover that assets were in fact available; and filial responsibility laws in the states will hold extended family members legally responsible to cover unpaid long-term care bills.
Many people that I meet have either heard of or think they know something about Medicaid’s 5-year lookback rule, but most people do not know exactly what it means. For example, they may not realize that there are certain transfers (gifts) during that 5-year period that don’t have any impact on Medicaid eligibility. These are called exempt transfers.
The Department of Health, overseer of the Medicaid program in New York, recently issued GIS 16 MA/010 updating the actuarial life expectancy table.
“So what,” you say?
The Supplemental Security Income program, known as SSI, is a federally administered program.
Unlike Medicare or Medicaid, SSI is a federal welfare program that pays monthly cash benefits to individuals who fall within 1 of 3 categories:
As in years past, the government continues to look for ways to restrict Medicaid eligibility and benefits. This year has been no different. There were proposals to further restrict Medicaid eligibility and coverage. As part of the governor’s annual budget, the New York State Senate and Assembly were presented with a plan to:
Fortunately, both houses rejected these proposals. But this may not be the end of the story.
When speaking with clients about the complicated Medicaid rules, availability, and exceptions, they often reply something like, “Wow, there’s so much to know.”
Clients come to us because we know the rules, and more importantly, we know the exceptions.
Many families assume it’s better to disinherit their child with special needs. Their intentions are loving—they don’t want the child to lose their government benefits as a result of inheriting; they don’t want to do their child more harm than good. They think it would be better to leave everything to their other children, trusting that those children will take care of the child with special needs.