by Tom Olofsson, Attorney at Law, www.MyTrustLawyer.com (773) 905-1193

When a person applies for Medicaid benefits their financial paperwork is carefully looked at.

The Medicaid Department looks for certain gifts or transfers. If transfers were made then Medicaid calculates whether a penalty will result. Medicaid will not pay the medical bills of the person during this penalty period.

The penalty period is figured by dividing the amount of the gift by the amount that it costs to stay in a nursing home for one month. In the Chicago area the cost to stay in a nursing home is around $6,000 per month. So, the amount of the gift is divided by $6,000. If the gift is $6,000 and we divide it by $6,000 we get a penalty of one month ($6,000 divided by $6,000 = 1).

In this case Medicaid will not pay the medical bills of the applicant for one month.

If the gift or transfer was $60,000 then we divide that amount by $6,000 and we get a penalty period of 10 months ($60,000 divided by $6,000 = 10). If the gift was $120,000 then the penalty period is 20 months ($120,000 divided by $6,000 = 20). So, if a person gives away $120,000 they will not be eligible for benefits till a period of almost 2 years passes.

The date upon which the penalty begins is as important as how long the penalty period lasts. This start date, in Illinois, will change soon. It is important that your attorney understand all gifts which have been made in order to do the best job planning and in preparing your Medicaid application.

by Tom Olofsson, Attorney at Law, www.MyTrustLawyer.com (773) 905-1193

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by Tom Olofsson, Attorney at Law, www.MyTrustLawyer.com (773) 905-1193

In years past a person could give away his home and money and qualify for government health benefits (Medicaid) the next day.

In 2006 new rules were put into effect in most state which effectively limit the amount of assets which may be
given away and still qualify for Medicaid.

The State of Illinois does not take anything away from the person applying for benefits. The State can and does disqualify applicants from receiving benefits based upon how much was given away and when the gift was made.

Certain types of transfers are not counted when figuring out the disqualification. These factors are used by Medicaid Lawyers to help their clients work within the rules to keep the largest amount of assets possible for the client to pass on to their family.

Full disclosure is important. Your lawyer must know everything in order to give his best efforts in helping you

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by Tom Olofsson, Attorney at Law, www.MyTrustLawyer.com (773) 905-1193

An Associated Press report, which was picked up by several newspapers, states that some nursing home residents feel as though they are being held against their will. They allege that nursing homes have a strangle hold on Medicaid reinbursements. These residents state that it is too hard for them to get care at home and that the situation needs to change.

The story by Matt Sedensky is titled, “For Some, Nursing Homes Are a Prison.

The story states, “…Medicaid recipients across Florida challenging the nightmare of the old and disabled: to be forced from comfort and familiarity into a nursing home.

The story says, “the state is illegally forcing them to live in nursing homes when they should be able to live where they choose. Advocates charge that nursing homes, afraid of losing money, have successfully pressured politicians to make qualifying for community care more difficult. They have filed a federal lawsuit… on behalf of nearly 8,500 institutionalized Floridians.”

Sedensky continues, “There are very, very, very few people who cannot be cared for outside in the community,” said Stephen Gold, a Philadelphia disability lawyer who, along with AARP attorneys and others, is representing the group. “Why should the state give a damn whether you put the money in the left pocket of the nursing home or the right pocket of the community?

“There’s a lot of concern that the nursing home industry is very powerful in many states and has made sure that a lot of Medicaid dollars go to institutional care as opposed to home and community-based care,” said Toby Edelman, an attorney at the Center for Medicare Advocacy.”

It remains to be seen whether this will become a trend. Patient advocates could sue on behalf of Illinois Medicaid recipients. With its large aging population Illinois could be next

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