Every child with aging parents should read about my Medicaid nightmares. It's something I've never considered or thought about in my lifetime. When my father needed a nursing home I found that Medicare only pays for the first 20 days. On the 21st day the fees are approximately $5000-$6000 each month. Ouch!
A case worker at the nursing home told me to look into Medicaid. Since my father didn't own a home, stocks, bonds or a new car, they felt it would be the best way to go. You see, Medicaid pays 100% of the nursing home if he qualifies. Sounds simple, right? Wrong.
Each state has different terms under Medicaid law but telling you about my Medicaid fiasco will give you a clear idea of what NOT to do.
There is a Federal Law covering the transfer of real property prior to going on Medicaid. Before President George W. Bush signed a bill making it five years, the law stated that any real property transferred within three years prior to a Medicaid application would be considered a "penalty" or result in decline. This only includes property signed over to another person without a sale for fair market value. If the house is actually sold for fair market value, to anyone, Medicaid does not consider it a "transfer of property" for qualification purposes. If you say that it was sold, Medicaid wants to see the sales document and proof of a deposit into a bank account for the net proceeds.
So you'll understand all I've been through, I'm going to give you a list of everything Medicaid had me provide:
*All of my father's bank statements for the previous 12 months and copies of all cancelled checks over $200.00
*Explanation of all checks over $200.00 (If written for cash, they wanted an explanation of what the cash was used for.)
*November bank statements for the previous 3 years
*Explanation of all checks over $200.00 on the November statements (If the balance changed drastically from one November to the next, they wanted the full year's statements with explanations and copies of checks over $200.00)
*The deed to any burial plot
*The title to any car owned by my father
*The life insurance paperwork
*Doctor's letters stating that my father needs a nursing home facility
*Receipts for any large purchase made by my father for any of the children (If no receipts, a written explanation for each.)
*A full explanation for ALL checks written to any of the children from my father's checking account for the past 3 years
*A full explanation of any checks written to "cash"
If a checking or savings account had anyone else on the account with my father, they wanted a full explanation of all deposits (source of money), debits, automatic payments, ATM withdraws and checks over $200.00.
I have a stack of papers about 7" high where I collected all the information I needed for Medicaid.
They had thirty days to approve or deny the application. They waited the full 30 days and then sent me the reason they had declined the request. It was something I gave them with the application. The case worker knew about it since day one. Had they of told me about it when we supplied it to them, I could have gotten the additional information they needed. Once I supplied them with that and reapplied, thirty days later they declined it again on something else they knew the first time. This cycle has been repeated over and over and over. I finally hired an attorney to handle this after five months of being screwed over by the Medicaid case worker. I think they must get a bonus for everyone they turn down.
Today, I am still waiting for the Medicaid approval. I am working on an irrevocable assignment on Dad's life insurance. You see, it counts as an asset and he is only allowed to have $2000 on hand, in cash or otherwise, to get Medicaid benefits. His pension and Social Security benefits can't be over $1200/month.
Isn't it a shame? Medicare will only pay 20 days for a nursing home and Medicaid won't approve anyone if they have anything to their name. What's wrong with this system?
My tips to the kids of an elderly parent:
Keep only your parent's name on their accounts
Don't write any checks for cash from their accounts
Ask an attorney about assignment of any life insurance to a funeral home for final services
If they owe you money and write a check to repay you, make them put on the memo line that they are repaying a loan
If they write you a check for anything, have them put the reason on the memo line (birthday, Christmas, etc.)
I hope this keeps just one person from going through what we've been through. I wish you luck with approval on any application to Medicaid.
