UPDATE ON THE HAWAII MEDICAID SYSTEM - The Good
and the Bad for 2006
With the start of 2006 comes an update on the Hawaii
Medicaid System for 2006.
First the good news:
For a married couple’s financial qualification
for Medicaid, there are increases in the amount of
countable assets and the amount of monthly maintenance
needs allowance for an at-home spouse when the other
spouse qualifies medically for nursing home Medicaid.
As of January 1, 2006 the amount of countable assets
that an at-home spouse can keep is increased from
$95,100 to $99,540.
Exempt assets include the personal residence, automobiles,
burial plots, bone fide burial plans, wedding and
engagement rings, and life insurance with no cash
value. Please note that this list is neither complete
in detail nor comprehensive.
As of January 1, 2006 the monthly maintenance needs
allowance for a community spouse is increased from
$2,377.50 to $2,488.50. When the at-home spouse’s
own income is less than this amount, the at-home spouse
is allowed to keep enough of the nursing home spouse’s
income to have income up to $2488.50. Certain deductions
and adjustments apply.
If you are interested in a more detailed description
about exempt and countable assets, and income for
the at-home spouse, request a copy of our brochure
“Qualifying for Financial Assistance for Long
Term Care in Hawaii.” Please call Allen at 531-5391
ext. 356, or see information at our website, www.hawaiielderlaw.com.
Now the bad news:
Major changes to the Medicaid system are coming. Major
changes in the law that applies to Medicaid qualification
are likely to be passed by the U. S. Congress by the
time you receive this newsletter.
Our publishing schedule requires we have the newsletter
ready about four weeks in advance of the mailing date
you receive it. We designed this newsletter to provide
you with valuable information, but not late breaking
news. That said, as I write this article, the U.S.
Senate and the U.S. House of Representatives have
each passed a bill to make major changes in the rules
for the Medicaid system. A meeting of a Conference
Committee of the two chambers is scheduled for early
December to work out a compromise bill. The vote on
the House bill—which very aggressively cuts
benefits for food stamps, college loans and grants,
health care for the poor, as well as long term custodial
care—passed by a vote of 217 to 215. The Senate
bill does make significant changes in the Medicaid
system, but is not as aggressive in its changes as
the House bill. We expect to see the results of the
Conference Committee in the coming weeks. Whatever
the final bill looks like, it will not be good news
for the poor, the disabled and for those facing large
bills for long term care because a family member has
the ill luck to suffer from Alzheimer’s or Parkinson’s
rather than cancer or a heart attack.
I want to thank all of you who responded to the Alert
that we sent out in November asking for you to contact
Hawaii Congressional delegation to not enact the most
harmful measures in the legislation for Medicaid “reform.”
Hopefully, our actions will have an effect. The House
bill passed by the narrowest of margins. In coming
issues of this newsletter, we will provide an analysis
of the legislation as the situation clarifies. Stay
tuned.
By Judith Lee Sterling
