Just had a new client come in to pickup their return. He stated his mom was going into the nursing home and the home administrator told them they needed to get the assets out of her name so Medicaid would pay for the care. He asked if this was somehing we could help them with. I told him Medicaid Fraud was beyond our scope of practice. He didn't seem to like the answer. Do others here have this question much?
-
In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
Alexis de Tocqueville -
Haven't had that come up in our office, but 'if everybody does it' is it still considered fraud?
Actually, Medicaid authorities ask about the transfer of assets and there are time restrictions on how long ago the transfer can have occurred and not impact on the receipt of medicaid benefits. And, it's hard to hide that information from them, they do check with county clerks and tax assessors, DMV etc. for any recent ownership changes by the person applying for benefits."A man that holds a cat by the tail learns something he can learn no other way." - Mark Twain -
1. Big difference between medicaid fraud and medicaid planning.
2. Might have been a good time to ref client to local Bar or Attorney association for an elder law attorney and develope a relationship with such a professional.
3. No one admits they "do medicaid fraud."Friends double; family triple. Don't buy an audit for yourself. If someone has to go to jail make sure it is the client. Remember it is only taxes, nothing important.Comment
-
No, I do not have this issue coming up as part of giving my advise. I do have it coming up for stupid asset transfers they do more harm to the taxpayer then they are good.
I believe that any Medicaid planning is fraud unless it's business assets to keep a business running. Why shouldn't people who have the money or disposable assets not pay for their care? I bet it's the same people who complain about EIC. I am really touchy on this issue and probably have it coming but that's OK.Comment
-
We advised them to go to an attorney but the locals don't seem to check much on property transfers here. Get so much of that going on we get a bit short about it. The counties cry for more tax revenue but don't take the time to check property transfers.In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
Alexis de TocquevilleComment
-
If she is going into the nursing home now, it is too late. He should have thought of this 5 years ago (the Medicaid "look-back" window.) But there are legal ways around it. He needs an Elder Care attorney. It still may be too late, since it is after the fact. Medicaid is administered by the state, and every one is different in their policing of the rules.Originally posted by DaveO View PostComment
-
Many people try to give away their assets to relatives in order to qualify for Medicaid. But when an applicant gives away property within five years of applying for Medicaid coverage of long-term care, Medicaid presumes that the gifts was made to qualify for Medicaid. This will trigger a period of ineligibility for Medicaid long-term care benefits on the theory that those assets could have been used to pay for the individual’s care.
Go to the link though. Some assets can be given away and it doesn't trigger a problem.Comment
-
It's much easier if a spouse is involved who doesn't need the nursing home care facility.Comment
-
I do not know if this is same in all states but there is a 5 year look back period on transferring assets. So it actually would not help her now.
It is hard for families to talk about but all of this needs to planned years ahead of ever having the need to go into a nursing home. If the funds are there in retirement accounts, cash, etc. then it should be used to pay for the care of the person when they become sick. I can understand a person not wanting their home to "go to the state" as they say around here, especially if there is a spouse still living.
Majority of people do not think about these things until it is too late.Comment
-
Along these same lines, those people who are signing up for ACA (Obamacare) Medicaid now and own assets like a house, the gov't. is placing a lien on their property and taking it upon their demise. We're going to see more fallout from this as time goes on, most of those folks happy about getting Medicaid health insurance do not know about this property grab by TPTB."A man that holds a cat by the tail learns something he can learn no other way." - Mark TwainComment
-
Planning vs. Fraud
I don't think Medicaid planning is fraud when the taxpayer chooses to give away assets before they become seriously ill. That's the whole point of the five-year look-back period.Originally posted by Gretel View Post
BMKBurton M. Koss
koss@usakoss.net
____________________________________
The map is not the territory...
and the instruction book is not the process.Comment
-
Where can I read this?
I haven't heard of this with Medicaid and obamacare. Can yo site somewhere I can red about the government doing this? ThanksComment
-
For States that fully expand their Medicaid program to conform to the original Affordable Care Act, there is NO asset limit for Medicaid.
Comment
-
People have always had to qualify for Medicaid based on their income/assets. I doubt if they would be eligible if they owned a house, unless it was a shack.Originally posted by taxmandan View PostComment
-
I believe It's strictly on income now. At least for adults below age 65. For nursing home care, it's much stricter; no you can't have assets. The expansion of Medicare was to cover the working poor or just plain poor, especially singles with no kids who didn't qualify before.Comment
Comment