Medicaid Application Case Studies

MARRIED-PERSON MODEL

In the following example of Medicaid Nursing Home Applications Case Studies, an elderly gentleman was admitted to a Nursing Home. Financial pressures quickly began to mount due to the high cost of his care. His spouse was worried that their life savings would be used up, she might not even have enough money to live on, or there wouldn’t be anything left to pass on to the children.

The mother and her children were very interested in asset preservation strategies but had many questions and concerns. We reassured them there are strategies they can implement that are entirely within Florida Medicaid guidelines. After we began to learn about the father, mother, and children to accurately assess their situation. We obtained the following information about the finances of both mother and father:

Medicaid Application Case Studies - Married Person Model for Website Case Study - Color

Medicaid Application Case Studies – Married Person Model

Our Recommendation:

Since the countable assets exceeded the spousal asset limit by $28,080, Medicaid Eligibility, Inc. helped the family coordinate with a Medicaid attorney. The family was advised by the attorney to implement the following strategies to help them reserve the excess assets: Burial Accounts were set up for both the mother and father, each at $2500, for a total of $5,000. Medicaid did not count these burial accounts as assets. However, the mother and father still had countable assets of $142,300 and needed to restructure assets to get below the maximum level of $119,220. To do this, they followed the Attorneys recommendations and were able to be Medicaid compliant for assets. Because they still had expenses and the Mother at home was only receiving a small income we were also able to distribute all of John’s salary back to the mother as “spousal diversion” to enable her to meet her monthly expenses.

Results:

With a little help from (their friends at) Medicaid Eligibility, Inc. along with the experienced Medicaid attorney that we have been working with for years, the father, mother and their children were able to realize the following (value-added) benefits:

  • The father was immediately approved for Medicaid.
  • The mother and father preserved the entire amount of their excess assets or ($23,000.) virtually
  • The family does not have to worry about Funeral Expenses or any burden on the children for trying to figure out what mom or dad wanted because they have purchased a Burial Policy that is excluded as an asset and will be there no matter what.
  • All of John’s income was diverted to Doris to help her meet expenses.
  • The children were pleased to have a little nest egg coming their way.
  • The mother, father, and children stopped worrying about their finances.

This information is in accordance with regulations in effect at the time of this example. Medicaid compliant annuities are still available, but extreme caution should be used anytime assets are being changed and must be in compliance with new federal legislation that has been passed.  The State of Florida has also adopted new regulations regarding Medicaid annuities, and we highly advise you consult an experienced Medicaid Financial Advisor to assist you with any Insurance Product purchases that are supposedly Medicaid compliant and get a full update on what some unintended consequences could be that are associated with these products.

SINGLE PERSON MODEL

In the following example of Medicaid Application Case Studies, the children of a Medicaid applicant placed their mother in a Nursing Home and paid privately for her care for three months. They were searching for a way to preserve their mother’s assets without sacrificing the level of care she was receiving. That’s when they turned to Medicaid Eligibility, Inc., and spoke to one of our friendly and highly knowledgeable Medicaid eligibility specialists.

The children were very interested in learning about proven asset preservation strategies but had many questions and concerns.

We reassured them that every strategy implemented with the coordination and advice from a Medicaid attorney was ultimately within Florida Medicaid guidelines, and then we began by learning about the children and their mother to accurately assess their situation. We obtained the following information about the Mother’s finances:

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Our Recommendation:

Since the mother’s funeral arrangements had been prepaid, all she had to do was sign an irrevocable designation form for the funeral contract to be excluded as an asset. Also, asset restructuring was needed to get the mother’s excess assets of $58,800 below the $2,000 allowable asset level for a single person. Assets were changed following the Attorney’s recommendations, and the five years look-back” period was not a problem.

Medicaid Nursing Home Applications Case Studies are all in accordance with regulations in effect at the time of this example. New Federal legislation that has been passed and the state of Florida has adopted them at this time, and any of the Medicaid regulations are subject to change without notice.