Page 31 - Summer 2019 - Lubbock Senior Link Magazine - Online Magazine

WHAT’S NEW WITH MEDICAID’S

LONG-TERM CARE PROGRAM By Lee Franks

People assume that Medicaid often historically has exempted little else, If a body can interpret its own
changes its rules, but at least for its not even retirement money, which rules one way on one day, it can
long-term care programs for the Medicaid should exempt without interpret them differently the next
elderly or the disabled, Medicaid conditions according to its own day. In August of last year, Medicaid
rarely makes significant changes to written rules. But in recent years, announced that, henceforth, it
the written rules. However, Medicaid Medicaid gradually has begun would exempt all qualified funds
frequently makes substantial changes reinterpreting its rules to make it for persons 70 1/2 years old or older;
to how it interprets those rules. easier for a person to keep his or her persons under that age would still
retirement money. have to purchase a deferred annuity
For the purposes of this article, the to protect retirement funds. So,
term “Medicaid” refers generally First, Medicaid quit counting IRAs Medicaid now exempts the house, a
to Medicaid for the Elderly and and 401(k)s and other types of car, and all retirement funds. This
People with Disabilities, or MEPD, retirement vehicles, broadly known reinterpretation of the rules has not
and specifically to the two long term as “qualified money”, if the person filtered down to most providers or
care programs administered by was married. In that case, a person even all of its own personnel, so
MEPD – nursing home care and the could invest qualified money into anyone with retirement money, who
Star+Plus waiver program, which an immediate annuity for his or her is applying for Medicaid services,
covers eligible persons living in the spouse, as long as it was irrevocable should seek legal assistance to take
community. and began paying the spouse full advantage of this change.
immediately. Then, Medicaid
From its beginning, Medicaid has interpreted the
been a needs-based and means-tested rules to allow
program. Aside from having to be the person to
over 65 or disabled to be eligible, a buy a deferred
person must have a medical need annuity, naming
to which only a licensed medical the spouse as
professional can attend. In addition, beneficiary. In
Medicaid caps the amount of income those cases,
a person can receive and the amount the annuity
of assets a person may own. did not have

The income limit changes every time to start paying
the Social Security Administration immediately,
makes a cost of living adjustment, and the person
or COLA. Currently, a person must could still cancel
have income below $2,313 gross per the annuity and
month. In fact, income rarely makes get his or her
any difference to eligibility since money back.
both the nursing home benefit and Later, Medicaid’s
Star+Plus have a work-around for too interpretation
much income. extended this
privilege to
The $2,000 countable resource single persons
limit causes the biggest problem. who had
Medicaid exempts a person’s qualified money;
residence (up to $585,000) and all the person
one car of any value. Aside from had to do was
personal property, a pre-need funeral purchase a
contract, and a few other rarely deferred annuity
applicable exceptions, Medicaid with it.

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