A confusing issue for seniors regards the matter of gifts — and possible federal penalties.

In general terms, under Medicaid states can “look back” as much as five years to see if gifts have been made. If the answer is yes, then Medicaid eligibility can be impacted.

Attorney Kim Boyer says “at the time of application, the Medicaid agency combines all the gifts that fall within the “look back” and divides the amount by $4,583 per month. The result is the number of months the applicant is ineligible for Medicaid benefits.

“On February 8, 2006, the Deficit Reduction Act (“DRA”) was enacted, changing Medicaid rules. For gifts made before February 8, 2006, the ineligibility period begins when the gift was made. For gifts made on or after February 8, 2006, the ineligibility period begins when the applicant is in a nursing home and is otherwise eligible for Medicaid except for having made the gift.”

There is more to this — and none of it is especially clear.

For specifics, take a look at Ms. Boyer’s commentary. It raises questions to take up with attorneys who specialize in elder law.

For the full article, see: What is the five-year “look-back” and how does it work?

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