| LEGAL
UPDATE
Change in Medicaid Transfer Rules Preparing
in advance for long-term care is important. Many people must utilize Mass Health
in order to pay for long-term care. In order to determine an individual's eligibility
for MassHealth benefits, the Division of Medical Assistance (DMA) examines an
applicant's or couple's income and assets. Assets are such things as real estate,
vehicles, personal property, stocks, bonds, bank accounts, annuities and trusts.
The DMA also looks at transfers of assets made during a certain period before
the application was submitted. This period is called the "look-back"
period; the "look-back" period is currently three (3) or (5) years depending
on how the asset is transferred. If an asset is transferred for less than fair
market value to a person who doesn't qualify under any exception, the MassHealth
applicant may be disqualified from coverage for a period of time.
Congress
recently passed a law, which changes the look-back period to five (5) years for
all transfers of assets. Additionally, Congress also changed the start of the
penalty period to begin on the date when the individual would qualify for MassHealth
long-term care coverage if not for the disqualifying transfer. It does not appear
that Massachusetts must enact new legislation to implement these new rules. As
a result, emergency regulations will likely be promulgated to enact these changes
in Massachusetts in the very near future.
The information in this Legal
Update is of a general nature and does not constitute legal advice. Your situation
may have special circumstances or facts not discussed in this Legal Update. If
you have questions about your eligibility for MassHealth benefits, you may wish
to contact the Seniors Law Project at (508) 586-2110 or (800) 244-8393. We will
arrange for a private and confidential appointment to discuss the problem. The
Seniors Law Project provides free representation or advice for certain types of
legal problems to people at least 60 years of age who live in our service area.
The printing and/or distribution of the Legal Update is made possible
by grants from the Massachusetts Executive Office of Elder Affairs and Old Colony
Planning Council and from the Massachusetts Bar Foundation. |
