| The new Tax Reduction Act of 2005 mandated that | | | | face value of all policies added together does not |
| seniors spend-down all of their combined assets | | | | exceed $1,500. (If the total exceeds $1,500 in face |
| before the sick spouse can qualify into a nursing home. | | | | amount, the cash value counts and may need to be |
| The act requires a 5-year look back for any transfers | | | | spent down on long term care.) |
| by seniors designed to deprive the state of those | | | | - Cash: A small checking or savings account not to |
| available resources to pay for the nursing home. | | | | exceed the limit imposed by the state. Most of the |
| The Medicaid program requirements are actually | | | | time, a single Medicaid applicant may keep only about |
| established by each State. Whether or not a person is | | | | $1,500 to $2,000. A married couple who both need |
| eligible for Medicaid will depend on where you live. | | | | nursing home care may generally keep a slightly more |
| All states provide community Long Term Care | | | | generous amount. And a married couple in which only |
| services for individuals who are Medicaid eligible and | | | | one person needs Medicaid assistance can usually |
| qualify for institutional care. In order to qualify, you will | | | | keep a larger Community Spouse Resource |
| have to effectively "spend down" your assets. | | | | Allowance. |
| Spend down is depleting private or family finances to | | | | -Burial space: Fully-paid burial plots, crypts, or |
| the point where an individual is sufficiently poor to meet | | | | mausoleums of any value do not count, for a client or |
| the eligibility criteria for Medicaid. Improperly following | | | | immediate family members. |
| the spend down guidelines can result in your family | | | | -Irrevocable Funeral Plan or Burial Trust: A prearranged |
| member's application for Medicaid benefits being | | | | burial and funeral plan does not count when the trust |
| deferred which means that he will not receive benefits | | | | cannot be revoked. The portion of an irrevocable |
| right away. | | | | funeral plan or burial trust that exceeds $7000 after |
| Once you are eligible for Medicaid, you have certain | | | | subtracting the value of fully paid burial spaces may be |
| rights: | | | | considered a transfer of assets. Exempt items from |
| You have the right to apply for any medical | | | | the $7000 limit include casket, marker, and vault. |
| assistance program of your choice. | | | | Prepaying your own funeral prior to SSI or Medicaid |
| You have the right to timely and adequate notice. | | | | acceptance allows you to arrange and pay for the |
| You have the right to a fair hearing | | | | funeral of your choice: |
| You have a right to fair treatment. | | | | WHAT TO BUY |
| With these rights, comes certain responsibilities: | | | | • Make sure the burial plan you purchase includes |
| You are responsible for providing true and complete | | | | everything that may be needed. The more you prepay |
| information about your circumstances, | | | | with money that will otherwise need to go to nursing |
| You are responsible for reporting changes in your | | | | home care, the less your loved ones will need to pay |
| circumstances. | | | | or finance. |
| If you have health or dental insurance coverage, you | | | | • Consider purchasing funeral arrangements, |
| must give the State of Georgia the rights to these | | | | casket, grave liners, opening & closing of graves, |
| payments. | | | | flowers, gratuities, limousines, police escort, obituaries, |
| Medicaid strictly limits the assets you can own. Each | | | | hair styling, makeup, clothing, burial plots, crypts, |
| state has its own limit on this amount and its own | | | | headstones, including placement and engraving, and |
| guidelines for which assets count toward the total. In | | | | expenses of the wake. |
| general, however, the following assets do not count | | | | As a Family Service Advisor, I work with families |
| against you for Medicaid eligibility, and are known as | | | | every day who are dealing with loss. Those who |
| "exempt assets." | | | | have not pre planned or have never even had a |
| -Your home: Your principal place of residence. In some | | | | conversation about how to deal with final expenses |
| cases, the nursing home resident may be required to | | | | when a loved one dies are usually devastated. |
| show some "intent to return home," even if that never | | | | There are 72 decisions that need to be made in the |
| happens. (Be aware, though, that second homes, such | | | | first 24 hours of arranging a burial. |
| as vacation homes or condos, are not exempt | | | | |
| assets.) | | | | By preparing for your final arrangements, your family |
| -Household and personal belongings: Furniture, | | | | will have comfort in knowing that your final wishes are |
| appliances, jewelry, and clothing.- | | | | being honored. It will alleviate stress and allow them to |
| - One car: The state may limit the car's value. | | | | celebrate you and your life. Request a free "Medicaid |
| - Cash value of permanent life insurance policies up to | | | | Information Pack" Email: linda. |
| $1,500: In most states, this asset is exempt only if the | | | | |