8 Common Questions About Medicaid
How often do the rules change that could affect my eligibility? In 2021 there were dozens of rule changes and/or policy clarifications that could have affected an applicant’s qualification.
Can I just give away my stuff in order to qualify? NO. Medicaid will look back 60 months for uncompensated transfers to anyone and apply a penalty of ineligibility of one day for every $237.93 that was transferred. This penalty is not reduced by passage of time until after a person enters long term care and is “otherwise eligible” for care.
Will I lose my home? The homestead is protected from liquidation if there is an intention to return home or if a spouse is living in the home. However, the homestead is subject to Medicaid Estate Recovery upon the death of both husband and wife. Planning may avoid this result.
Can I be disqualified if my home is in a Revocable Living Trust? Yes. A primary residence cannot qualify as “non-countable homestead” if it has been placed in a revocable trust.
What is a QIT a/k/a Miller Trust? It is a tool recognized under federal law for applicants with too much monthly income. In Texas, if the applicant’s income exceeds $2,523.00 per month, a QIT is required.
What about Spousal Impoverishment? Medicaid has provisions to protect the spouse by allowing the spouse to enjoy a certain amount of assets and income.
Does HHSC give incentives to care for a parent? Yes. The applicant’s home can be awarded to a caregiver if their care has prevented a patient from entering a nursing home for 2 years prior to filing. Complete documentation is required.
How long will it take to get approved? HHSC is allowed 45 days upon receipt of application if the resident has been in a Medicaid bed for 30 days. However, budget at least 90 days for approval if a QIT or other trusts are part of the submission.