Address Medicaid’s Looming LTC Crisis

Townhall ^ | April 28 | Boustany, Blackburn, Gingrey

[April29]

States also struggle as increased Medicaid spending crowds out other budget priorities, and they blame federal rules, allowing individuals with substantial assets to enroll in this welfare program. In a letter to Congress, the State of Virginia writes “the federal government should give states greater flexibility to consider assets when determining eligibility for LTC coverage through the Medicaid program.” The State of Wisconsin agrees this will “help ensure the long-term sustainability of such programs for their residents in most need of government assistance.” Federal rules force states to disregard more than a half million dollars in home equity and the entire amount of other valuable assets during enrollment.

Making matters worse, the 2010 law prohibits states from tightening loopholes that allow welfare abuse. Virginia provides an example of a Medicaid applicant who purchased a $900,000 annuity, naming his wife the beneficiary of $89,000 per month. Obamacare forces Virginia to ignore this income when deciding eligibility.

[April29]

Welfare abuse?

[Thom Pain]

Gosh! We give away hundreds of $Billions and it attracts fraud! Who coulda thunk it??

[staytrue]

Listen carefully as you walk through a hospital and 20% of the conversation is about how to strip someone’s assets and qualify them for medicaid.

Everyone and I mean EVERYONE (white black yellow brown or other) is doing this.

It just makes sense (from the patient’s family’s point of view).

[kenavi]

The states I'm familiar with (California and Florida) void any transfers of assets in the previous 5 years for the purpose of seeing if the maximum asset test for Medicaid LTC eligibility is met.

Usually in these situations a lot of the casual conversation you hear is bunk.

[The Great RJ]

In most states Medicaid funding of long term nursing care is already less than the cost of providing the care and about 70% of the nursing home residents depend on Medicaid. In my state nursing homes Medicaid reimbursement is on average $20+ per day less than what it costs to care for their residents. Medicaid budgets will become even tighter as Obamacare dumps more people into Medicaid.