Medicaid Planning
Are You Eligible for Medicaid?
- To become financially eligible for Medicaid care, the State will assess your ‘monthly income’ and ‘countable assets’ to determine whether you qualify.
- ‘Monthly income’ means both earned and unearned income. Examples include wages, net earnings from self-employment, royalties, annuities, passive income from investments, loans payable to you, bank and stock accounts, and pensions.
- ‘Countable assets’ include cash, bank accounts, or other assets that you own which could be used to pay for your care (in lieu of receiving Medicaid). Some assets are ‘excluded,’ and thus not counted when determining eligibility. For example, your home, household goods (as defined by law), and certain additional necessary items as defined by law are excluded.
- The income limits are low, less than $2,500.00 per month. This means anyone earning more is not eligible for Medicaid
- The countable asset limit in Arkansas is approximately $2,000.00, meaning any assets in excess of this limit may disqualify you for Medicaid.
- Additional rules apply for Spouses, pursuant to which a party can also protect certain resources from being ‘counted against’ their Spouse who is applying for Medicaid.
- Many people seek opportunities to transfer resources to their children or other loved ones in order to qualify for Medicaid. However, there is a ‘look-back’ period of five (5) years, meaning that, subject to some limitations, any asset you transfer within five (5) years of the date you apply for Medicaid will be counted against you. A penalty is applied under a formula which will calculate the number of months you are ineligible for benefits based on the value of the asset transferred.
- The exclusions and various methods of determining eligibility are extremely complex. An Attorney familiar with the Medicaid rules can advise you on all of these areas including potential ways to minimize or eliminate penalties under applicable law.
Contact our Firm with any Medicaid questions to see if we can be of assistance.
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