So many details so little space, but hoping to breakdown details here, and get some understanding and sound advice.
My husband is the Medical POA for his brother ("John", disabled due to stroke in 2020, low-income, in Medicaid supportive living facility) and Financial POA for their mother ("Mom", has dementia, in self-pay memory care).
2014 John was approved for Medicaid medical, and rarely used it. Remained no/low-income, lived with Mom, worked occasional cash jobs and never paid rent to Mom, though she asked.
2020/10 Mom transferred her car title to John for $10 when she moved to assisted living, mostly for liability reasons.
2020/11 John suffered stroke due to untreated diabetes, high-blood pressure and was left with speech impediment and weakness on right side.
2021/01 John was approved for Medicaid long-term care through SLF application, and started SSDI/SSI application. Mom agreed to pay co-pay until SSI kicks in. Application is still pending.
2021/02 John moved into Supportive Living Facility for adults under 65 with physical disability. Two days later, he SOLD the car to Carmax, deposited the $8000 check and took $600 cash for "expenses". He/we did not know it would jeopardize his Medicaid eligibility and were more concerned about the car ending up lost in an auto pound due to negligence. He sold the car because he had NO money for gas/registration/insurance. Prior to selling the car, he had no income and no countable assets. He has since received $600 stimulus money which is not countable.
Technically, it has been 26 days since the car sale, but it is a new billing month for the SLF.
What should he do? We want him to do the right thing to protect his Medicaid medical and long-term care status. Can he keep $2000 for "assets" and pay down the rest to private pay at the SLF? Is this done through the SLF or does he need to contact Medicaid? Would this honest mistake affect his medical benefits? Any other options or insights since he is disabled (though allowed to drive, but not responsible).
Illinois Medicaid Penalty Divisor(2020): Specific to the Supportive Living Program, the penalty divisor is $181 per day / $5,430 per month.
Thanks in advance!