Posted on 11/13/2013 3:31:42 PM PST by Vince Ferrer
“So here’s the deal: since 1993 there has been a federal law requiring states to recover at least some of the costs of Medicaid-covered medical care for anyone 55 years old and up, from the estates of those covered. States enforce this law, with their own laws and policies added in, differently in every state. But the general principle is there. Up until now the usual consequence has been things like this: Medicaid puts a lien on the house of someone in a nursing facility who has run out of money, and after they die, the heirs find they have to buy the house back from the state if they want it.
We haven’t had lots of people younger than 65 on Medicaid, because in most states simply earning less than the Federal Poverty Level did not qualify one for Medicaid.
And we haven’t had many people with lots of assets on Medicaid, because in most places you have to have less than around $2400 to your name before Medicaid will cover you. You can keep your house and your car, but Medicaid reserves the right to put liens on them and take them when you die.
But now we have the Affordable Care Act, and its expectation that everyone in the lower tier of income will end up in the Medicaid system. To accomplish this, they have dropped the asset test. So now we will have lots of people ages 55-64, who have assets but not a lot of income right now, for whatever reason, on Medicaid.
The kicker of it is, if you make the right amount to qualify for a subsidized health insurance plan, your costs are going to be shared and subsidized by the government. But if you go on Medicaid, you owe the entire amount that Medicaid spends on you from the day you turn 55.”
/johnny
Should it read Medicaid and not Medicare.
I believe the author intended to write “Medicare” instead of “Medicaid” in the article.
Medicare is health coverage for older Americans that theoretically is paid for by payroll taxes.
Medicaid is Single Payer insurance for the poor, which will soon be most of the USA.
So again, Governor Palin was right about slavery. Tell me again why she isn’t in a leadership position?
. . . which is why you place all your assets in a Living Trust. . . you technically, and legally, HAVE no assets. . .
I guess Martin Armstrong’s title writer is confused between Medicare and Medicaid?
In my state, a representative attends probate hearings and cross-checks against known Medicaid recipients. All Medicaid expenditures, including premiums and capitation and not just limited to long-term care, delivered after the recipient is 55, are eligible for estate recovery.
I went to HS with Glen. He led our Americans Against Communism club.
The article fear mongers a bit with poor writing that implies that everyone on Medicaid/Medicare can have their homes seized after death.
...but the reality is probably just that early Medicaid/Medicare enrollees qualify for asset seizure...those 55 to 64.
People over 64+ going onto Medicaid/Medicare shouldn’t be in jeopardy of having their homes seized to pay for their medical care.
uhh.... because she hasn’t run for one?
Presidents George Washington, Ulysses Grant, Dwight “Ike” Eisenhower and several others were drafted to be candidates. Did you know that?
Yes, but they are still counted as assets if the trust is revocable and you must put it in an irrevocable trust and it must be done far enough in advance of the application for medicaid benefits, at least 5 years in advance.
If you apply during that time it results in a calculated period of ineligibility for the benefits based on the value of the assets transferred away without fair compensation in return.
If Glen Downs is such a clever guy, he should know the difference between Medicaid and Medicare.
It is thus in Minnesota as well, and you may not gain anything by transferring to a revocable trust.
He’s not fear mongering. He’s saying that since there is no longer an asset test, BUT there is still the mandate to recover costs, AND since all kinds of new people will be enrolling - the new enrollees may not know it, but it is possible ALL subsidies and cost under the ACA may be recoverable by asset sale after death.
IF that’s true, whoa Nellie.
Thanks for the info!
Madicaid is welfare. If someone has assets why should tax payers foot the bill.
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