Effective October 1, 2020, Home Care (community) Medicaid will change to require a full financial review for the 2.5 years immediately prior to the requested pick up (start) date and impose transfer penalties, similar to those for nursing home coverage.
This change creates a huge roadblock for many seniors and disabled individuals who need care at home.
Although there are no current regulations specifying how to calculate the transfer penalty, we believe it will be the same as that of nursing home coverage:
a transfer penalty is determined by taking the total value of all transfers made for less than fair market value (gifts/donations/ transfers to Medicaid protection trusts or non-disabled individuals) and dividing that by the regional rate for the cost of nursing home care. The regional rate for Long Island in 2020 is $13,407. So, for every $13,407 transferred in the past 2.5 years, the applicant will be disqualified from home care services for 1 month.
For anyone contemplating applying for Community benefits, they MUST apply before September 30, 2020 to avoid any potential transfer penalties.
DISCLAIMER: This is attorney advertising and is not intended as legal advice