Indiana Medicaid for Seniors – Navigating the Look Back Period
Midwifery is a vital tool for over half of seniors to help them pay the high costs of long-term care. To ensure that you receive the assistance you need, an Indianapolis attorney at Frank & Kraft helps Indiana seniors understand the Medicaid look- What is the Medicaid Look-Back period?
When you apply for Medicaid, you will be asked to review your income and your “countable resources” as You must not have sold assets at a lower price than their fair market value within the 60-month look-back window in Indiana to be eligible for Medicaid. Medicaid is designed to help those who are truly in need of financial assistance, and this rule prevents applicants from artificially impoverishing themselves to qualify. The length of the waiting period is determined by dividing the value of the assets transferred by the average cost of long-term care in your area.
How the Look-Back Period Affects Medicaid Eligibility
If an applicant has transferred assets for less than fair market value within the five-year look-back period, Medicaid will impose a penalty period. This penalty period is the time period during which an applicant is not eligible for Medicaid benefits. This includes coverage for nursing homes. If you gave assets worth $100,000 during the look-back window and the average monthly cost of nursing home care in Indiana is $10,000, then the “waiting” period for the You would be responsible for paying for your own care during that time before Medicaid benefits start kicking in and helping with your long-term care costs.
Exceptions to the Look-Back Rule
While it is crucial to be aware of the Medicaid look-back rule when planning for long-term care costs, it is also important to know that not all asset transfers trigger a penalty. Certain transfers are exempt from the look-back rule, including:
Transfers to a spouse:
Assets transferred to a spouse are not subject to penalties because Medicaid considers the couple’s combined resources when determining eligibility.
Transfers to a disabled child:
If an applicant transfers assets to a child who is disabled (as determined by Social Security Administration standards), it does not count against them.
- Transfers to a trust for a disabled individual under 65: Assets placed in a trust for a disabled person under the age of 65 are exempt.
- Transfers of a home to a caregiver child: If a child has lived in the applicant’s home for at least two years before the applicant enters a nursing home and has provided substantial care that delayed the need for nursing home placement, the home transfer may be exempt.
- How Can Medicaid Planning Help?If you believe that you will need to rely on Medicaid to help cover long-term care costs as a senior, it is in your best interest to incorporate Medicaid planning in your comprehensive estate early on to ensure that you qualify – without incurring a penalty – when you need benefits.
- Can We Help You Navigate the Indiana Medicaid Look-Back Period?For more information, please join us for an upcoming FREE seminar. For more information, please join us for an upcoming FREE seminar. Read More!
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