Medical Assistance is governed by rules, regulations, policies, and guidelines. They are a series of steps… which when followed in proper sequence and timing, can lead to immeasurable benefit to the family. These steps, however, can be tricky, confusing, and often frustrating to families seeking benefits.

We help families navigate the intricacies of the law to better enable an elderly person living in an assisted living, at home, a nursing care facility, or an adult foster care home, to readily qualify for government benefits.

Generally speaking, Medical Assistance for the elderly is available to persons over 65, blind or disabled, and who live in the State of Minnesota. The person applying must also meet certain asset and income requirements in order to receive benefits.

The asset requirement is no more than $3,000.00 in available assets for the person applying for the benefit. The spouse of the person applying for the benefit also has asset restrictions.

Not all assets are considered available. Medical Assistance divides assets into three categories: Available, Unavailable, and Excluded.

Available assets include (but are not limited to): cash, checking and savings accounts, joint accounts, stock, bonds, the cash surrender value of life insurance, non-homestead real estate, treasury bills, vendor interest in a contract for deed, etc.

Unavailable assets are considered to be assets that you own but are not able to liquidate. Such examples might include: real estate owned jointly with a non-spouse, an inheritance that is tied up in Probate, real estate that is on the market but has not yet sold, an interest to a note which no one will buy, etc.

Excluded assets are assets that will not be counted toward the asset allowance for the person applying for Medical Assistance. Examples include a pre-paid funeral that is funded with an irrevocable life insurance policy, possibly a car presumed to be used to take the applicant for appointments, a small life insurance policy with a face value of less than $1,500.00, etc.

Many families are worried and unsure about gifts or transfers to family members. It is true, Medical Assistance takes a sharp look at all gifts an applicant has made over the last 36 to 60 months before the date you apply for benefits. You may be surprised to hear that a gift of any size is reviewed by the County before benefits can be awarded. This may mean paying for a grandchild’s wedding, or a co-pay for a prescription for an unemployed child that lives with you. All gifts or transfers for less than fair market value are reviewed. Any improper gift with be subject to penalty.

The penalty is determined by taking the value of the gift and dividing it by a standard nursing home rate. This amount is determined by Federal law and changes every year. The result is a number of months for which you will not be allowed to use Medical Assistance benefits to pay for your care. Great care and planning is needed before you give or transfer any asset, especially if long term care needs are in the foreseeable future for you or your parent.

Wills
Trusts
Probate
Guardianship/Conservatorship
Supplemental Needs Trust (Disability Trust)
Power of Attorney
Healthcare Directive
Real Estate

© 2011 Grathwol Law Office. All rights reserved.