Recently, New York passed a budget which includes significant cuts to its Medicaid long-term care program. Beginning October 1, 2020, New York will impose a look-back period of 30 months or 2.5 years on qualifying for Community Medicaid (or home care) benefits. If a transfer is made for less than fair market value (gift) and does not qualify as an exception, it may result in a period of ineligibility. Prior to this change, New York did not impose any look-back period for these benefits, and thus, applicants were able to transfer assets or make gifts without penalization.
The new rule does not affect those who are currently receiving Medicaid benefits. It also does not affect those who wish to apply for Institutional Medicaid (or nursing home) benefits which continues to maintain a 5 year look-back period for eligibility.
We highly encourage you to contact us if you or someone you know is in need of Medicaid benefits or anticipates needing to apply for benefits in the near future. We understand that those who are disabled or elderly may not wish to have an aide in their homes at this time. However it is important to begin the process of Medicaid planning as soon as possible. Once approved, the Medicaid recipient may place a hold on services until it is safer to have home health aides.
If you have questions about Medicaid eligibility, estate planning, or estate/trust administration, please feel free to contact Kelly Wilks at email@example.com. We would be happy to schedule a complimentary call or virtual meeting to assist you during this time.