What does the "five year lookback" mean?

You will be requested to supply 5 years of bank statements. With Mom, out of those 5 yrs 4 a year was pulled. Moms bank supplies small pictures of the checks so the caseworker was able to see who the checks were written to. They look for inconsistencies like large sums of money coming out of the accounts and will ask for reasons for those withdrawls. If large amounts were gifts, the gift may have to be returned or a penalty given. All stocks, shares, bonds, investments will have to be reported. Insurance policies with case value. Employer insurances are exempt.

If applying for Medicaid, Medicaid requests 5 years of financial records to check for large cash or property transfers in an effort to hide money or shield other assets. They check everything.