Medicaid Myths: Part 1 of 3
This month we are publishing the first of a three-part
series about common myths surrounding Medicaid. Parts
2 and 3 will appear in future newsletters.
Medicaid was considered a complicated program when President
Lyndon B. Johnson first signed it into law at the Truman
Library in Independence, Missouri. It has grown even
more complex during each of the thirty years since.
Although it is a national program, it is administered
by each state. The rules and regulations are constantly
changing and can vary widely from state to state. On
February 8, 2006, President Bush signed into law the
Deficit Reduction Act of 2005. This law makes major
changes to the Medicaid system adding to the confusion.
So it’s no wonder there are many myths and inaccuracies
surrounding the program.
This month, we look at some of the common misconceptions
we frequently hear about Medicaid.
“My mother heard about someone who…”
All too often, we meet people who have heard horror
stories about Medicaid from well-meaning friends or
family members. These stories are often filled with
inaccuracies and half truths that frighten people into
spending every last dime on nursing home care for themselves,
or for a loved one before turning to Medicaid for help.
Similar stories have also prompted people to assume
that what worked for a friend will work for them as
well. So, they give their house or all of their assets
to a child in hopes that impoverishing themselves will
immediately qualify them for benefits.
Unfortunately, they soon find out that these transfers
mean that they are unable to receive benefits for months
or even years after the money is gone.
That’s why it’s important to contact an
attorney who concentrates his or her practice in elder
law. With a clear picture of your specific situation,
an elder law attorney can explain those laws that should
allow an individual or married couple to preserve their
house and enough of their assets to live comfortably
for the rest of their lives.
“My father is already in the nursing home, so
there’s nothing we can do now.”
It’s true that a family member can wait longer
than he or she should to contact an elder law attorney,
but it’s rarely ever too late to establish a good
plan. A good rule of thumb is that the earlier a plan
is put into place, the more assets can be preserved.
So, when is the right time to call an elder law attorney?
You should pick up the phone right now if you or a loved
one does not have a Power of Attorney in place for financial
or healthcare decisions. It’s important these
documents are put into place before a gradual or sudden
decline in mental competency occurs. It’s also
important to make sure the financial Power of Attorney
contains the right language so Medicaid planning is
possible.
You should also call right now if you think that nursing
home care will be needed by a loved one. This may be
due to a diagnosis of terminal or debilitating illness
such as Parkinson’s or Alzheimer’s or ALS.
It may also be that your loved one is being discharged
from the hospital and told that he or she will be unable
to care for themselves at home. All of these situations
should be reviewed by an elder law attorney to determine
what type of planning can be done.
“The Medicaid office can just give me the paperwork.”
Those who work in the Medicaid office cannot offer you
legal advice. You may not learn about laws that may
allow you to receive Medicaid and still keep part or
all of your spouse’s income as well as your own.
Nor can they represent you or give you advice on the
laws that, depending on your specific situation, may
allow you to keep all your assets without spending down
a single penny. Medicaid rules and regulations in place
to ensure families don’t lose everything to a
nursing home costs. An elder law attorney can explain
how those laws may benefit you and your family.
The Medicaid Application requires you to list your assets.
Hiding your assets, and then completing a fraudulent
application is a criminal offense. You, or whoever applied
for you, can be prosecuted for Medicaid fraud if assets
were knowingly misrepresented.
If you would like to hear more about the new Medicaid
laws and would like a speaker for your group or organization,
please call Beth-Ann Kozlovich, Director of Marketing
at 531-5191 ext. 327.
By Judith Lee Sterling
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