What Are The Penalty Periods For Gifts Under Medicaid?
If you are planning on making a sizeable gift to someone there are things you should know if you want to qualify for Medicaid. Find out what the penalties are concerning gifts.
Medicaid can be a complicated process especially when it comes to qualifying. If you have assets and you plan on making gifts to friends or relatives make sure that you know the rules and regulations concerning Medicaid and what are the penalty periods for gifts under Medicaid. The Federal government and your State work in conjunction to provide Medicaid benefits to those who are low-income, over 65 and blind or disabled. These benefits are meant to cover the cost of medical care for qualifying individuals. If you have certain assets before you apply and you make a gift there could be a penalty period that you may incur in the process.
Rules of Medicaid
Medicaid has strict rules when it comes to gifting and qualifying for benefits. Since the inception of the Deficit Reduction Act of 2005, the look back period of Medicaid has changed to on or after February 8, 2006 up to five years afterward. If you have made any gifts during this time period you may be disqualified up to a certain amount of time from applying for benefits. What are the penalty periods for gifts under Medicaid? The penalty period is different from the look-back period and is calculated based on the amount of the gift you made and the average cost of monthly care. If you are in need of services and benefits during this time of disqualification you may have to use alternative resources or pay out of pocket.
Professionals Have the Answers
If you want to find out what are the penalty periods for gifts under Medicaid are you need to speak to a professional Medicaid representative or elder law attorney. These professionals will be able to help you with any specific questions you may have about Medicaid and the laws or rules governing the particular state in which you live.
Send this page to a friend ...