Changes to Medicaid in NY beginning January 2, 2021
Currently, to be eligible for Community Medicaid, which covers care in the home such as a personal care aide, an individual must meet certain disability criteria and can have no more than $15,750 in non-exempt resources.
Prior to 10/1/2020, one could transfer or gift assets in excess of the $15,750 the month before applying and still be eligible for Community Medicaid benefits. Beginning January 2, 2021, there will be a two and a half year look back period, which means those looking to apply for Community Medicaid will be required to provide two and half years (30 months) of financial records to determine if any gifts were given or any transfers made for less than fair market value during the lookback period.
Initially in January 2021 the lookback will be 3 months, requiring submission of financial records since 10/1/2020. Transfers made BEFORE 10/1/20 will not have any penalty . Each month, the lookback will add an extra month, requiring submission of records since 10/1/2020. If in fact gifts or uncompensated transfers were made during this time, an applicant will be penalized and result in a period of ineligibility for Community Medicaid.
The 5-year (60 months) lookback for Chronic Care Medicaid, care in a Nursing Home, currently in place will remain the same.
If you are considering gifting or transferring assets for the purpose of qualifying for Medicaid, I advise speaking first with an experienced Elder Law Attorney to determine your best course of action.