medicaid advisor: true or false quiz

The Medicaid Quiz

BY COLIN SANDLER

Stop. Before reading on, take the true/ false quiz to the right to learn what you know (or don't know) about Medicaid coverage for long-term care needs. Then compare your responses to the answers below:

TRUE or FALSE?

1. I can own my home and still qualify for Medicaid at-home care.

#1: TRUE. For in-home care, you can own your home if it’s your primary residence. If you own other properties and they pass through your estate, Medicaid will recoup the cost of your care from your estate. #2: FALSE. For in-home care, a pooled income trust can be used to shelter all income over the Medicaid limit. The 2022 limit is $954 per month (gross income). If you are in a nursing home, 100% of your gross income goes to the facility unless you are married, in which case your spouse “might” be entitled to keep some of the combined income. #3: TRUE. You can choose your caregiver via the Consumer Directed Personal Care Program (CDPAP), which allows you to hire any one of your choice to be your caregiver. The exceptions: You cannot appoint your spouse or the person acting as your primary Power of Attorney. Also, the person must be legal to work in the U.S. and willing to be on payroll. #4: FALSE. Once you are approved for Medicaid, they will assess you for your care needs. If you do not present your needs adequately or use the “wrong language,” you will get less care than you may want or need. There are programs which assess differently, so having guidance here will ensure you get the best possible amount of care. #5: TRUE. Medicaid will exempt the principal of your retirement account or any annuity if you are taking a monthly distribution. You must take the required

minimum distribution (RMD) to shelter the asset (even if it is a Roth IRA). Note: Most of NY State uses a different life expectancy table than the IRS to determine RMDs. So you may have 2. I cannot qualify for Medicaid because I have to take significantly more income income (a pension or retirement distributions). from your account than what the IRS tells you; only Westchester, 3. Medicaid will pay for at-home care provided Putnam and NY City use the IRS life expectancy table. by my daughter and her friend. #6: FALSE. There is a strategy called Gift/Note that, typically, can 4. Once I get Medicaid, they will provide all the protect about 40 to 60 percent of care I need to stay at home. the assets at risk at the time of placement in a nursing home - even 5. Medicaid cannot make me cash out my IRA if you didn't do any planning or the or Retirement account(s) to pay for care. planning you did was still within the five-year lookback period. 6. My Mom is now in a nursing home - which #7: FALSE. Medicaid does not we did not plan for - so I guess I will have to follow the same rules as the IRS. spend down all her money. If you gifted any money, Medicaid can penalize you for the transfer. 7. Dad is going to a nursing home. He gifted A penalty means Medicaid denies each of us $15,000 last year, according to IRS coverage for a period of time con sistent with the value of the gift. rules, so those transfers are safe. How did you do with this Medicaid qualification test? If you had any wrong answers, you may want to consult a professional to protect as much of your assets as possible. n n n Colin Sandler, LCSW, CCM, is the owner of Medicaid Solutions Colin offers FREE weekly seminars on Community Medicaid and Nursing Home Medicaid via Zoom. Please check MedicaidSolutions.com for information and registration. and has been providing advice on aging to seniors and their families for over 20 years. Call 914-9242566 or email Colin@Medicaidsolutions.com; 2127 Crompond Rd, Cortlandt Manor, NY.