| Dear Mr. Premack: I found your
article on the new Medicaid criminalization of gifts law to be very
important. I have another question. What resources is a patient allowed
to keep while still receiving Medicaid in the nursing home? Please do
not use my name. – A.W.
Federal law imposes several qualifying standards when deciding who
will qualify for nursing home assistance. First, the patient must be 65,
or blind or disabled. Second, the patient’s doctor must certify that
nursing home care is needed under the circumstances.
Third, the patient must have limited monthly income. In 1996, it was
necessary that an individual have income not more than $1410 per month.
As of January 1st the limit moves up to $1452 per month. A married
couple who both live in a nursing home could not have more than $2,820
per month in 1996, or $2904 per month in 1997.
Forth, the patient must have countable assets that do not exceed
$2,000 in value. Medicaid divides assets into two broad categories:
"countable" and "non-countable". Some very
significant and valuable items fall into the non-countable category:
1. An automobile, regardless of value, so long as one spouse needs it
for transportation to work or to the doctor. If the car is for luxury
transportation only, the value is limited to $4,500.
2. Household and personal items, like furniture, clothing and a
television set.
3. A burial fund. This can be up to $1,500 in cash or $1,500 in life
insurance. You can pre-purchase a burial plot and casket regardless of
their value. In addition, you can have a prepaid funeral with no value
limit if the plan is irrevocable.
4. The homestead. This is often the largest exemption, since it
places the home and all land attached to the home in the non-countable
category. To qualify, either a spouse must still live in the property or
(if there is no spouse) the patient must have an intention of returning
home. It does not matter that the patient may be too ill to actually
return home. All Medicaid requires is a stated desire to return home.
5. When the patient is married, the spouse is also given a
"spousal impoverishment" allowance. Medicaid totals the value
of all countable resources and cuts them in half. If the resulting
number is less than $15,804 (in 1997) then the spouse is allowed to
retain countable assets of that value.
On the other hand, if the resulting number is more than $79,020 (in
1997) then the patient is credited with the excess. Only when the
patient’s countable resources are brought down to $2,000 will the
patient qualify for Medicaid assistance. |
