Deadline for applicants wishing to apply for Community Medicaid is approaching quickly. Beginning October 1, 2020 applicants will be penalized for transferring assets in order to apply. What does it mean in simple terms.
Today an applicant can transfer any amount of money to anyone or a trust and become financially eligible the very next month. That means applicants will be able to receive home care services quickly; however, beginning October 1, 2020 if an applicant transfers assets to anyone, such as, their children or a trust they will be penalized for the transfer. Presently the rule Medicaid is speculated to impose is the nursing home regional rates. This means the following: In NYC if the applicant transfers $128,440 Medicaid will impose a penalty period of approximately 10 months. During these ten months applicants will have no other alternative but to pay privately for their home attendants.
It is strongly suggested that a potential applicant who may not presently need or require home care services apply before October 1, 2020 and capitalized on the present regulation; otherwise, they will suffer the consequences. The only good part about the change in the law is that the penalty cannot exceed two and one half (2.5) years.
For more information about this issue feel free to contact us.