Medicaid Look Back Period
Most people know that there’s a 5 year look back period, but that’s the extent of their knowledge. What’s this all about as it relates to an applicant for Medicaid? What it is and how it pertains to you.
When someone is applying for Medicaid, the applicant has to be poor. This year, poor is defined as having assets less than $14,400 dollars. However, when an applicant applies, Medicaid requires 5 years worth of records. We will call it an audit for lack of a better word and what they are looking for is uncompensated transfers, otherwise known as gifts.
If Medicaid determines that gifts were made in the last five years, the applicant will get punished. For how long depends entirely on how much was given away. Medicaid takes the total number of gifts over the last five years and divides that by something known as the regional rate. The quotient is the number of months that the applicant is ineligible for Medicaid to pay for a nursing home.
There are some exceptions to this rule and we would be happy to discuss these exceptions with any individual or family that would like to schedule a free consultation.