Created in 1965, Medicaid is a Federal Program that is designed to pay for the medical expenses of financially needy people. Individuals over the age of 65 are eligible for Medicaid if they meet certain income and resource tests. However, even if an applicant is approved for Medicaid benefits, that does not necessarily mean that Medicaid can’t recover the benefits previously provided to the Medicaid recipient.
Medicaid has the right to recover the value of the benefits it provided on your behalf after the age of 55 for community benefits, or at any age for long-term care or nursing home benefits. However, recovery is limited to your probate estate. Also, Medicaid can only pursue claims against your probate estate if there is no surviving spouse, no child under the age of 18 and no disabled child of any age.
If you own a home, Medicaid may place a lien on your house for the amount of funds expended on your behalf after you reach the age of 55. Pre-death Medicaid liens are simply notice liens. Medicaid has no claim against the real estate until you die. However, if your house is sold before your death, Medicaid can seek recovery from the proceeds of the sale.
Therefore, if you are planning to qualify for Medicaid, you should not only prepare to meet the Medicaid eligibility requirements, but also protect your assets, especially your home, prior to seeking Medicaid benefits.
By: Todd C. Ratner, Esquire
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