Frequently Asked Questions
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Click on any questions below to find the answers...
What will I learn by buying the Medicaid Married Solutions Manual?
Didn't the new Deficit Reduction Act (DRA) Medicaid laws passed by Congress in 2006 make it imposible to protect assets from Medicaid?
Several years ago, we bought an annuity, which the financial representative said would be protected from Medicaid. Now, Medicaid is saying that is not the case and that we will have to include it as part of the spend-down before my spouse can qualify for benfits. What's the truth?
What types of benefits will Medicaid provide?
If my loved one is on Medicaid, won't they get substandard care?
Is this legal?
My spouse and I have all our assets in a revocable living trust. The person who set up the trust said it would protect our assets from Medicaid. Is he right?
Who gets the saved/protected assets?
What is the impact on Social Security?
How long will it take to become eligible for Medicaid?
Is it a permanent solution?
Once in a nursing home, doesn't Medicaid require you to "spend down" most of your money on care before you can qualify for Medicaid benefits?
Isn't it against the rules to shelter your assets for the purpose of becoming qualified for Medicaid?
Don't you have to be broke to get on Medicaid?
This is a second marriage for both of us. We have always kept our assets seperate, and we also have a pre-nup. When we apply for Medicaid for my husband, won't they only look at his assets, since mine have never been in his name?
Can't I find out from the Medicaid office how to protect assets?
We gave our daughter $25,000 last year. Isn't my husband disqualified from Medicaid for five years?
If there was a way to protect assets from Medicaid, wouldn't my attorney tell me about it (which he has not)?
My spouse in in an Alzheimer's unit, for which I have been paying for over a year, now. Is there anything I can do where I would not loose control of my finances?
My wife lives with me and I'm still able to take care of her, but it's obvious that her mind is deteriorating quickly. Is it too early to get started on a plan, or should I wait until she is in a care facility?
How come you have the answers when nobody else seems to?
What will I learn by buying the Medicaid Married Solutions Manual?
Didn't the new Deficit Reduction Act (DRA) Medicaid laws passed by Congress in 2006 make it impossible to protect assets from Medicaid?
Not at all. The rules are certainly different, but it just means that there has to be some adjustments in the Medicaid asset protection strategies you employ. Some strategies that were useful in the past may no longer be effective. On the other hand, new rules mean new opportunities and new strategies, which is what you will find in the Medicaid Married Solutions Manual. -
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Several years ago, we bought an annuity, which the financial representative said would be protected from Medicaid. Now, Medicaid is saying that is not the case and that we will have to include it as part of the spend-down before my spouse can qualify for benfits. What's the truth?
Deferred annuities (lump-sum version with a cash-in value) do not now, nor have they in the past, provided protection from Medicaid. Annuitized or immediate annuities (contracts that had been irrevocably converted into a guaranteed income stream), if constructed properly, can be a very effective asset protection tool in most states. However, the Deficit Reduction Act has established very specific rules and procedures that must be strictly followed. The Medicaid Married Solutions Manual contains a through discussion on how and when to implement such a strategy. -
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What types of benefits will Medicaid provide?
That depends on the state. In all states Medicaid (called Medi-Cal in California) provides benefits for nursing home care, which typically includes room and board, care, prescriptions, supplies and medical coverage. In most states, other types of care, often referred to as 'community based care', such as assisted living facilities, residential care facilities, adult foster care facilities, in-home care and adult day care, may also be covered. Some states cover all these types of care, some cover one or two, and others only nursing home Medicaid. You may want to verify the specific types of care provided in your state. -
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If my loved one is on Medicaid, won't they get substandard care?
The quality of care is more a function of the specific facility, rather than the pay status of the patient. The truth of the matter is that the majority of long term care patients are already on Medicaid. Sure, there are some "high class" facilities that cater specifically to those clients for whom cost is not a consideration. However, most facilities will generally have a mixture of Medicaid and private pay patients. For the most part, the actual caregivers have no idea, nor do they care, which is which. Besides, every facility must abide by both state and Federal standards of care. It is against the law to provide substandard care. In addition, every state has an Ombudsman program available to patients and their families to investigate such problems. And, regardless of whether the patient is private pay or on Medicaid, the more involved the family, typically the better the care of the patient. -
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Is this legal?
Absolutely! What we are doing is teaching you how to use the Federal and state Medicaid eligibility rules exactly as they are written. You'll be learning how to use the rules to your advantage, not trying to get around them. -
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My spouse and I have all our assets in a revocable living trust. The person who set up the trust said it would protect our assets from Medicaid. Is he right?
He is not. A revocable living trust, although it may have other benefits, provides little or no protection from Medicaid. -
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Who gets the saved/protected assets?
Most of the strategies we describe provide for the saved/protected assets to remain with the spouse of the patient. A few of the strategies are designed to allow the children to end up with the saved/protected assets. We also discuss actions you can take to protect assets from "estate recovery" after you are both dead and gone. -
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What is the impact on Social Security?
There is no impact on Social Security benefits. Social Security is something the patient has earned. Taking steps to protect assets from Medicaid does not affect someone's Social Security payment. -
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How long will it take to become eligible for Medicaid?
That depends on your specific situation, and the particular strategies you choose to implement. Most of the strategies, if implemented in a timely manner, would allow you to qualify within a week or so to a couple of months. -
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Is it a permanent solution?
Once a patient is financially qualified for long-term care Medicaid, unless they were to acquire additional assets (for example, an inheritance) they would normally remain financially qualified for the rest of their lives. -
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Once in a nursing home, doesn't Medicaid require you to 'spend down' most of your money on care before you can qualify for Medicaid benefits?
That's what Medicaid would like you to believe. Although you may have to reduce your assets to a particular level before you can qualify for Medicaid, you are not required to spend your money on anything in particular, including care. In fact, you are not required to spend it at all. -
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Isn't it against the rules to shelter your assets for the purpose of becoming qualified for Medicaid?
No. What is a violation of Medicaid rules is to take various actions with your assets, for whatever reason, and then not disclose that fact at the time of Medicaid application. What we teach you is the optimum structure and timing of Medicaid asset protection strategies and techniques designed to maximize the portion of a patient's assets that can be protected. And, since everything is legal and "above board," and you can share with the Medicaid worker the details of everything you have done. There is absolutely no need to hide anything. -
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Don't you have to be broke to get on Medicaid?
Not necessarily. For single patients, that is true. However, when the patient is married, Medicaid has provided protection for some minimum of assets for the spouse. Unfortunately, even with these spousal protection rules in place (which vary from state to state), there is often times a significant spend-down requirement (in some cases, in the hundreds of thousands of dollars) before the patient can qualify for any assistance. The strategies we provide concentrate on significantly reducing (or, in many cases, completely eliminating) the spend-down. -
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This is a second marriage for both of us. We have always kept our assets seperate, and we also have a pre-nup. When we apply for Medicaid for my husband, won't they only look at his assets, since mine have never been in his name?
Unfortunately no. Medicaid does not care who owns which assets, where the assets came from, or how long you have been married. If you are married they look at "combined countable resources." Whatever is available to one spouse is assumed to be available to the other. The existence of a pre-nup does not change that. -
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Can't I find out from the Medicaid office how to protect assets?
Do you really think that Medicaid is interested in helping you learn how to protect assets while qualifying for Medicaid? Besides, Medicaid workers are not trained, nor are they allowed, to give financial or legal advice. -
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We gave our daughter $25,000 last year. Isn't my husband disqualified from Medicaid for five years?
No! That's one of the common misconceptions. The look back period is not the same thing as the penalty period. -
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If there was a way to protect assets from Medicaid, wouldn't my attorney tell me about it (which he has not)?
Most attorneys know little or nothing about Medicaid qualification in general, or Medicaid asset protection in particular. And, of those that do, very few have the knowledge or experience to really put together an aggressive plan to maximize the protection of assets while preparing a patient for Medicaid qualification. But that is exactly what we have been doing since 1995. With our experience and knowledge, we can show you, and your attorney, exactly what you need to know. -
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My spouse in in an Alzheimer's unit, for which I have been paying for over a year, now. Is there anything I can do where I would not loose control of my finances?
That's the point. Right now you are in charge, just like the captain of the Titanic was in charge - until it went under - or, in your case, until the money is gone. What you're going to learn is how to permanently protect the money so that you can retain that control, no matter how long your spouse lives. -
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My wife lives with me and I'm still able to take care of her, but it's obvious that her mind is deteriorating quickly. Is it too early to get started on a plan, or should I wait until she is in a care facility?
Don't wait! The sooner you understand what you can do and, equally important, what you can't do, the better the opportunity you will have to protect your assets from Medicaid. -
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How come you have the answers when nobody else seems to?
We are not the only ones with the answers. We are the ones, however, that have put all the answers together in an easy-to-read and easy-to-understand format that just about anyone can take advantage of, and at the same time made it available at a really low, economical price. It would seem that everyone else out there, who really knows what they're doing, wants to charge you anywhere from a couple of thousand dollars to as much as $15,000, or more, to "take care" of the problem. Same answers, different approach. -
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