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Spydoorman Asked January 2016

Can family members be reimbursed for care contributions to pay down accounts before applying for Medicaid?

My Mother In-law is in an assisted living facility. I handle all her financial matters. The family of 5 children have been contributing a total of $500/month for her care till the VA Aid and attendance kicked in. Now that we got approved, the retroactive amount paid and the VA income coming in have now pushed us over the maximum asset limit for the bank account. Was thinking of reimbursing each of the family members that have been contributing an amount that would bring the bank account below the asset limit.
Wanted to know if Medicaid will allow this. Application will be in Ohio.

pamstegma Jan 2016
No Medicaid will NOT allow it and they will invoke the gift penalty unless there was a pre-existing care contract drawn up by a lawyer.

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