Tackling Health Care Coverage

NC graphic agingJohn Nugent helped a man who had given his money and real estate to his family a few years ago.  Problem is, he may soon need nursing home or rest home care, and the rules penalize these financial gifts.  John proposed restructuring the real estate titles to fix the problem and having the family return some funds to the man.  Then, the man could pay his children for the care they provide him, using a written contract.  This type of payment is permitted under Medicaid asset transfer rules.

Katie Yale Barnes’ client had a similar problem, due to ill-advised gifts of money a few years ago.  The woman is now in a nursing home and needs Medicaid coverage immediately.  Fortunately, her children kept records showing that much of the money went to pay for in-home care.  While this doesn’t guarantee that Medicaid will approve coverage, Katie has a good argument that the “undue hardship rules” should apply.  Otherwise, her very ill client would have no medical care!

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