What is the Medicaid Lookback Period?
Whether you are starting to think about Medicaid planning and asset-protection strategies for yourself as you age, or you are assisting an elderly parent with Medicaid planning and asset protection, it is critical to understand what is involved in Medicaid planning and how the “lookback period” works. In short, the lookback period refers to transfers of assets made before a person applies for long-term care coverage through Medicaid, but certain types of transfers within a particular period of time can result in penalties.
The most important thing to know is that working with an elder law attorney in Connecticut on Medicaid planning and asset protection can prevent any issues arising that are related to the lookback period. One of our lawyers can speak with you today about working on Medicaid planning and strategies for asset protection in Connecticut. In the meantime, we can provide you with more information about the lookback period and how it works.
Learning About the Lookback Period in Connecticut
It is also important to know that there is a five-year lookback period in which all assets and transfers of property will be considered. If you are assisting an elderly parent with long-term care, you already know that the lookback period can complicate paying for nursing home care significantly, and a substantial amount of money may need to be paid out of pocket that otherwise could have been covered by Medicaid. Further, certain transfers made during the five-year lookback period can result in the person who needs Medicaid coverage for long-term care being penalized.
What does all of this mean? In order to be eligible for Medicaid to pay for long-term care in a nursing home, you (or your elderly parent) must “spend down” below a certain amount. In short, you cannot have more than $1,600 in countable assets to be eligible for Medicaid coverage, but you should know that there are many types of assets that are not “countable” for Medicaid purposes (for example, clothing, home furnishings, and many other related assets are exempt).
How the Five-Year Lookback Period Works
When a person seeks Medicaid coverage for long-term care, Medicaid will identify that person’s countable assets to ensure that they are below that $1,600 limit (it doubles for married couples both seeking long-term care, and it is significantly higher for a spouse who is not seeking Medicaid coverage). Then, Medicaid will “look back” five years into the past at any asset transfers made by the person seeking Medicaid coverage for long-term care. Any transfers made before that five-year window are not considered — a person can make any amount of asset transfers and will not be penalized.
If any ineligible transfers are made of countable assets (such as transfers of money or tangible property to an adult child, or to a friend), a penalty can be applied. There are no penalties for transfers between spouses. You should also know that there are exceptions to the transfer rules that an elder law attorney can help you with.
Contact a Connecticut Medicaid Planning Attorney
If you have any questions about the lookback period and Medicaid planning, an experienced Connecticut elder law attorney at the Law Office of Brian S. Karpe can help you. Contact us today for assistance.
Source:
portal.ct.gov/dds/-/media/dds/factsheets/medicaid_title_19_fact_sheet.pdf
