Many potential applicant’s are reluctant to file a Medicaid application because they read or heard that Medicaid will take their money, their income and their homes, due to the 5 year look-back. This idea is totally absurd and ridiculous. First, Medicaid doesn’t take anything! If an applicant is ineligible Medicaid denies their application. Second, Lets clarify the 5 year look-back and when it actually comes into consideration:
There are two types of Medicaid applications. Community Medicaid and Nursing Home Medicaid.
What is Community Medicaid? At its basic core it’s a health insurance; however, once on Community Medicaid the recipient can request to receive home-care services as well. What is the look-back period for Community Medicaid you ask? One month! This means that if the applicant had a million dollars in April of 2017 and transferred everything but $14,850 on any day in April, by May 1, 2017 the applicant will be considered financially Medicaid eligible for Community Medicaid.
When we’re dealing with nursing home Medicaid we’re compelled to deal with the 5 year look-back; however, don’t make the mistake that it automatically means 5 years of disqualification. The 5 year look-back period simply means the applicant has to surrender 5 years of bank statements. If in the 5 year look-back there were no transfers or transfers were to a spouse there will be no penalty imposed. Applicants, their spouses and/or family members should not jump to conclusions and miss out on an opportunity to protect some or all of their loved ones life savings either for the applicants use or their beneficiaries.
In conclusion, one must not jump to conclusions and miss out on what is basically owed to them.