The terms Medicare and Medicaid are sometimes used interchangeably when, in fact, they are very different programs. Medicaid is a means-based program designed for those who have very few assets. As such, penalties are in place to avoid people from taking advantage of the system. Transfers of all amounts and reasons are heavily scrutinized by Medicaid because the burden falls on them to prove that these transfers were not made for the sole purpose of qualifying for benefits. Some examples of transfers are:
- Gifts to family members or charities
- Payments made informally to caregivers without a written agreement
- Loans made to family members without documentation
Certain situations are exempt from transferring assets and properties to certain parties. If you are thinking about applying for Medicaid, it is a good idea to speak with a knowledgeable attorney that can help you avoid penalties.
How the Medicaid “Look-Back” Period Works
This article is for informational purposes only and shall not be construed as legal advice. No attorney-client relationship between the reader and Brennan & Rogers, PLLC, or its attorneys is intended. This article should not be used as a substitute for legal advice. Laws may vary from state to state, and the educational materials found in this article may not apply in all jurisdictions.
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