Posted on August 10, 2006 at 09:43:42:
Time was, many middle-class families took advantage of loopholes that allowed them to transfer assets to family members and then let Medicaid pick up the bill for nursing home care. A tough new law has made it harder to qualify. Equity planning and long-term-care insurance are expected to be more important now.
Some years ago, the value of a person’s home was exempt from the eligibility equation. Under the new law, anyone with more than $500,000 in home equity is ineligible, though a house occupied by spouse or a disabled or minor child is still exempt.
Another change: the “look-back” period, when Medicaid can examine asset transfers and declare the individual ineligible for benefits, has been lengthened from three year to five.