Mom gave us cash gifts for last five years.

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Now that I know about Medicaid 5 year rule, how do I figure up moms penalty for qualifying since she gave us cash gifts last five years? Unfortunately I did not know this when she moved in s few years ago. Well her passing for my gas and 1/2 her food count against her too? Does she need credit card receipts for last five years,??


Hi. It sounds like you are about to panic. If you look over at the top right, your answers may be under Money and Legal. Good luck.
In addition, they may or may not 'look back' at cash gifts esp if they are small. Medicaid is so complicated. I had a Aunt who was mentally ill and resided in a group home for 30 plus years paid for by welfare....not sure what program paid it, but anyway, her parents (my grandparents) put the family property in this Aunt's name before they passed on. Now that this Aunt has died, the family gets to sell the property ($350,000 listed price) and keep the proceeds. I mean that's nice, but sure don't understand how that worked...seems to me the State should be reimbursed for all those years of care.
There are special rules that allow you to create a trust for a disabled child so that their care can be paid for. I would consult a trusts attorney before I assumed that this money is not subject to Medicaid claw back.
Kashi, and babalou, my sister is in a group home. Medicaid will eventually find out and demand the full amount. It won't be pretty.
Medicaid generally "looks at" any transaction over $400 in Illinois. (Got that number from the Admissions Director/Medicaid Coordinator in the nursing home where mom had her rehab. They will want a list of the last five years' transactions in every one of her accounts as well as a list of any assets she owned during that period. If you omit any, they WILL find them.

As I understand it, every area has a nursing home monthly cost number. Like, let's say the Chicago area is $8,000 a month. If they find $80,000 that they consider to be gifts, they will exclude ten months of her care.

I have no idea how they figure food and gas costs paid to you. I'd suspect that won't count though.

Don't feel bad that you didn't know. Most people don't.
Anti - when the Medicaid application is done, there will be financial details required to be turned in to accompany the application. Could be a full 5 years, could be 6 months. It will depend on just how your state does Medicaid. Medicaid is a state administered program under federal guidelines. For my mom in TX it was 3 years. & 6 months of banking plus insurance policies & real property details & details on all her income sources (actual awards letters type of thing).

What I think is being looked for is a "pattern of. Spending " that makes sense for the income and savings that they had for the past years. So if mom had 50K savings 5 years ago & got 1K a month income & has a home, it can make sense she could be down to impoverishment. But if she has been living with family & no paid caregivers and is now impoverished then they are going to look for gifting as there still should be plenty of assets for a spend down.

The gifting is basically a transfer penalty that is day based with the base line figure of whatever your state pays for daily room & board reinbusrement rate paid by Medicaid. There should be the formula used on your state medicaid website. Like for TX it's $145.00 r&b paid to the NH daily. So a 50K transfer would mean roughly 345 days that they are ineligible for Medicaid to pay for NH ALTHOUGH they are now qualified for Medicaid. 345 days is a long long time to have to private pay......

From this point on, you need to stop any gifting etc with moms $$. Go over the figures and if it's substantial, then I'd suggest you get the details and all legal and get mom& you to an elder law attorney. It will be $$ well spent.
Pam - actually based on what Kashi wrote, it can make total sense that the property did NOT have a Medicaid MERP claim or lien. If Kashi's aunt had been on a program for 20, 30, years then her application was before MERP was required to be done. Like for TX Medicaid if they were on it before March, 2006, no MERP. But any applications done after March, 2006 are.

probably just a small pool of recipients that fit this situation.
Kashi's family just lucked out.
I worry about this too, and my folks have plenty to see them through.. I just got paranoid after reading so much on here and other sites! They live with us, and still take the same amount of cash out every month for casinos, spending etc. They also pay the electric and TV bill. That is the only bill they pay.. out of their checking. But they do pay the Costco trips, and give me cash for groceries and gas in my truck since I drive them everywhere. They paid off our credit cards when they moved in ( not alot) and daughters car when she bought a house. Are we in the crossfire if things go south? I hope not, but I still worry. Are we safer because it comes out of thier cash? How do I prove the casino spending...LOL How does anyone? I just keep my fingers crossed. I am on all their accounts, have been for 10 years or more.
Kashi is in Tennesee. They recover actively. I have seen posts where the property is listed and sold, only to stop cold at the closing. Then the seller not only loses the house, they have to pay the buyer back for all the expenses. Not a pretty picture.
Yes Pam, this is in Tennessee...and I actually think that the State, Medicaid should be paid through the proceeds of this property. It certainly would be a 'drop in the bucket' for all those 30 plus years my Aunt was cared for in a group home for the mentally ill. But the taxpayers paid for all this care. I am not the Executor of the Will so can't really find out a whole lot as my cousin, who is the executor, doesn't relay information to the rest of the family.

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