It is my understanding that if an asset was removed during the 5 year period before qualifying for Medicaid, at less than market value, Medicaid will require the value of that asset be used before Medicaid would be active. Example - gave a car and a number of asets to my children 2 years before I asked for Medicaid help. The total value of the assets was $200,000. Assets are totally gone, no recovery - and I am broke ($2,000 in assets). If Medicaid refuses to provide me services - do I just sit outside and die with no care? Inquiring minds need to know!
Thank you in advance for answering my question.
So what happens is you apply and are told there will be a penalty period. Someone either pays privately for that period, or someone takes care of you for that period.
There is another thread where a son is having a hard time with Medicaid because his father sold property and distributed the money between his children 2 yrs ago. Now Dad needs Medicaid. His justification is Dad had no idea this was going to happen. Medicaid rules should be part of Estate planning.
Several years ago the Medicaid government funded program was enhanced to stop all the fraud that was going on. Medicaid can and will ask for the money back from the children.
I have to say it is one of the few efficient government programs, they know what to do and how to do it. I am personally glad, as although retired, I still have to pay for this program on my taxes.
Did you do this knowing that you would be broke and then you would just get on welfare? I am just curious because I can't imagine giving away your financial security while you are living.
These are the very situations that cause the stiff, unbending rules. I think that you should get assistance from your kids, they are obviously more financially secure because of your choices, so they can help you until the penalty period is over.
Here's the link to the other post where the situation is similar.
https://www.agingcare.com/questions/how-can-we-prove-that-money-gifted-by-my-father-last-year-before-needing-to-placed-long-term-wasnt-b-455096.htm
Thank you @charles5434. I've wondered the same thing, though what I read in some of the responses here makes sense. The snark is unfortunate.
I'm sure many/most people are unaware of that planning is key.
If you do have medical need and are hospitalized, they can't discharged you to just have you sit on the sidewalk. You have medical need. So with or without medicaid, they'll have to address those needs somehow. Some people have lived in hospitals for years.