Law Office of John L. Roberts
An Elder Law Attorney
 Certified by the National Elder Law Foundation
1200 Converse Street, Longmeadow, Massahcusetts 01106


Protecting Independence and Preserving Assets

By Attorney John L. Roberts

It is never too late to take steps to protect your life savings from Medicaid liens. The sooner you begin your planning, the more options you will have.

When you are caring for a loved one who may need nursing home care, your time is precious. Your time and attention is devoted to making sure your family member is receiving the care that protects their health and well being. Time is also valuable when you consider the daily cost of a nursing home. Every month of lost eligibility costs more than $7,000.

When you hire us for Medicaid planning, we will:

For one flat fee, we provide you with the advice and services you need to get long term care benefits.

Asset transfers are now scrutinized going back five years from the date you file an application for Medicaid benefits. In other words, asset transfers must be listed on the Medicaid application, unless 5 years have passed since the date of the transfer:

If an asset is transferred within the 5 year period, there is a disqualification period based on the value of the asset. The penalty period begins on the month the transfer was made, OR
the date on which the elder is eligible for Medicaid, and would otherwise be receiving nursing home care paid by Medicaid, if he or she had not transferred the asset.

If an asset is transferred today . . .

the asset transfer must be reported on a Medicaid application that is filed within the next 5 years . . .

Until 5 years from today in:
2008
 2009 2010 2011 2012 2013

Click here to: Calculate the eligibility date five years after asset transfers.

Important Information for Married Couples:
If the person who applies for MassHealth nursing home benefits is married, that person's spouse is known as the "community spouse" because that spouse continues to live in the community. The community spouse is allowed to keep an amount of assets called the Community Spouse Resource Allowance. The allowance during 2008 is set at $104,400. Under Massachusetts Medicaid law [Chapter 118E, Section 21A (a)(1)(v)] the state legislature requires that our MassHealth agency “shall establish the maximum community spouse resource allowance permissible under 42 U.S.C. s.1396r-5(f)(2).” That maximum amount is set by the Centers for Medicare and Medicaid Services. The maximum amount for 2008 is $104,400. The maximum amount beginning on January 1, 2009 will be $109,560.

The CSRA allows elderly spouses, usually women and widows, to maintain a measure of financial security. It will help elderly spouses avoid the indignities of impoverishment, and can prevent the need for premature nursing home placements. If you have a spouse, mother, father, uncle, aunt, or other relative who receives nursing home care now, or may need care, we can help your family plan for the future.

Income: If the nursing home resident is married to a spouse who lives at home, the healthy spouse needs income to live. The spouse who lives at home is allowed to keep some, or all of the income that is paid in the name of the spouse who is in the nursing home. This is called the Minimum Monthly Maintenance Needs Allowance ("MMNA"). As of July 1, 2007 this figure is $1,711.25. As of July 8, 2008: $1,750 per month. On July 1, 2009 the MMNA will be increased to $2,739.

The Minimum MMNA is the minimum amount of income needed for living expenses by the spouse who is still healthy enough to live in the community. If her/his income falls below this amount, the healthy spouse is able to keep income or assets of the institutionalized spouse. Housing expenses that are more than a standard amount can be added to increase the Minimum MMNA. If you are entitled to an increased amount, I can help you and your family to obtain the increased amount. Federal Medicaid Law [Section 1396a(a)(3)] gives us the right to a fair hearing for "any individual whose claim for medical assistance under the plan is denied or is not acted upon with reasonable promptness." Federal Regulations require that Medicaid payment for services be continued during the time an application is waiting for a fair hearing, and the state must make corrective payments if the applicant wins the fair hearing.

The spouse who needs nursing home care is also allowed to keep income of $72.80 per month as a personal needs allowance.

The Maximum Monthly Maintenance Needs Allowance (as of January 1, 2008: $2,610) is the upper limit on a nursing home resident's income and/or assets that are allowed to his/her spouse, unless the healthy spouse shows exceptional circumstances. I can help you and your family if a hearing or court decision is needed to explain exceptional circumstances and obtain a higher amount.

The Standard Shelter Expense is the amount included in the Minimum MMNA for rent, mortgage payment, property taxes and insurance, and/or condo maintenance charges. If these housing expenses are greater than an amount set by MassHealth, the extra expenses can be credited to the community spouse's Minimum MMNA.

Excess Shelter Allowance
$514
Utilities (CS pays for heat) $528
Utilities where heat is included in monthly rent $320

Additional amounts can be credited for heat and utilities. Housing expenses that are more than the standard amounts can be added to increase the MMNA. Call 567-5600 for an appointment to learn how Medicaid can help you and your family manage the costs of long term care.