My father receives $850 a month in social security. He had received $100K from a worker's compensation settlement 5 years ago. He has had Medicaid but his health has declined and was told he would qualify for Long Term Care. He asked me for help with his application and I told him to list his workers comp settlement as an asset. He refused and did the paperwork without my help. It turns out that he had two separate bank accounts and was only reporting the bank account with $100 in it to Medicaid. It also turns out that over the past 5 years he has taken all except for $10K of the money with him on yearly vacations to El Salvador and spent and gave all of it away.  Can he get in trouble for lying to Medicaid? Does this mean he won't qualify for Medicaid to pay for a caregiver in his home?

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Medicaid is pretty good at finding all the assets that someone has had over the past 5 years. When Medicaid finds out that he had a $100k settlement and gave most of it away, Medicaid will deduct that from his care. Let's say he gave away $90k. Therefore, he would need to self pay for any of his care up to that $90k.

Of course, most elders, and most grown children of these elders don't realize this will happen.  I knew nothing about Medicaid for elders until I came to this forum, so I know not to give away any money but who has a crystal ball to know when that time comes when one needs help.
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His bank accounts are tied into his SS number. The accounts & their deposits will surface eventually.

There in addition to medicaid issues could also be "secondary payer act" issues.

If you are not his DPOA, do NOT become his DPOA. If you are, id suggest to do a formal letter of resignation done by an atty on this and send to dad.
There is a fiduciary duty to being a DPOA. If & when the transfer penalty surfaces, Medicaid will suspend his eligibility. They can claw back payments made as well. So those payments to the NH, health care providers, prescriptions, etc can be clawed back. Which can mean the NH and others will have no choice but to seek payment from dad, his DPOA or whoever else they can pressure to pay.

Until $ is resolved, he is toast on ever getting into another Facility unless its private pay under binding contract done by family.

The other option is that the NH asks APS to intervene & ask the court to make dad an emergency ward of the state. Courts do this routinely and judges usually have a list of vetted temporary guardians to place dad with as a ward. APS kinda has no choice but to look into family / DPOA situation to see if that is the source of the problem. So think if APS asking around on you or your spouse will pose problems. If so, do not become a DPOA for dad.

? For you? Does or could dad have a "Casa Chica" situation in El Salvador?

And about the secondary payer act.... What this requires is that if any medical costs related to the accident were paid by Medicare (Medicare not Medicaid), Medicare must be repaid for all costs pAid from the settlement proceeds. This went into law about 6 years ago and just how to enforce was in flux Probsbly when dad got paid. But requirement still there. Nowadays a good tort attny places the settlement in an escrow like account till all secondary payers are repaid and only then does the individual get $. But all is ultimately the individuals responsibility. If dad could have exposure on this as well,run from being his DPOA or ever signing off on any responsibility.
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Yes, he can get into trouble for lying to Medicaid.
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So, Jose, since your father isn't going to qualify for Medicaid, who is going to be providing the caregiving or paying for the caregiving your father will require?
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