In a recent column, I expressed concern that public officials would take advantage of our intense focus on the pandemic and sneak legislation which would otherwise be very unpopular past an unwary public to advance their own agenda. And that is exactly what happened in our own state.
Now, to be clear, I applaud and admire our governor’s strong leadership in reining in the pandemic here, especially vital to the most vulnerable – the elderly and the disabled. Meanwhile, while we weren’t looking, he added a provision in the new state budget to wipe out a longstanding policy upon which those in need depended to become or remain eligible for Medicaid for homecare. Homecare which they could not otherwise afford. And if they can’t afford the care? Health spirals down until they die or get shipped off to a nursing home.
As you may know, Nursing Home Medicaid has a 5-year look back period. When you apply you must submit 5 years’ worth of all financial statements. If Medicaid finds you gave away assets, you will be penalized by having to pay for the nursing home out of your own pocket before Medicaid kicks in.The more you gave, the longer you wait and pay. It’s a long, complex application process for both you and for Medicaid case workers often taking many months for approval. But at least the nursing home will care for you while your Medicaid application is pending.
What has changed now? For the first time ever, Community (Homecare) Medicaid will have its own look back period. That’s 30 months of financials to submit even if it may only cover a few hours of homecare a day. And if it takes months for approval instead of the weeks it formerly took, you will not get care from any private homecare agency while you are waiting. You will be on your own for as long as it takes.
A quick example: You’re of advanced age and fair health and you decide to give your daughter a good chunk of your savings to help her buy her first house. Let’s say $75,000. Two years later, health declining, you need homecare which you can’t afford and you apply for Medicaid. Your approval now takes 6 months AND you are now penalized an extra 5 months due to your generous gift to your daughter. And by now, with no care, your health has deteriorated so much, guess where you are headed – the nursing home, which will cost Medicaid even more. Can this really be the goal of our state?
To make it worse, the language in the new state budget indicates that this penalty includes gifts made even before this law takes effect – when you wouldn’t even know the gift could hurt you. And the harmful changes start amid this pandemic and financial crisis. This new law is simply brutal to both those in need who wish to remain and be cared for at home. Many, many will be ineligible for Medicaid – a broken promise from our governor. Please contact your state legislators. The look back for Community Medicaid needs to be repealed now to protect our seniors and disabled!
Sanford R. Altman is a senior advocate and attorney focusing on elder law, estate administration and estate planning and a member of Orange County Office For The Aging Advisory Board and Alzheimer’s Association Advisory Council. sanfordaltmanlaw@gmail.com Age Loudly The Podcast!