Posted on 01/27/2014 8:25:49 AM PST by rktman
This was not in the fine print of the Affordable Care Act (that no one read), and there was nothing in it that changed the existing law from 1993. The ACA however, did expand the number of people who are eligible for Medicaid, so now there are more people from the ages of 55 to 65 whose estates could be on the hook for Medicaid expenses after the beneficiary dies.
This sounds like a cash grab to me. Many states have not changed the law to limit the amount of expenses the government can claim are owed for Medicaid, but Oregon and Washington have issued emergency rule changes.In Washington it now says that the state can only recover the cost of nursing home care for the 55-65 age groups.Oregon followed this path as well.However there are 23 other states that have expanded Medicare under Obamacare and they have not changed their estate recovery policies. This could end up with the deceased person’s heirs losing homes, property and other assets.
(Excerpt) Read more at finance.townhall.com ...
What did Medicare actually PAY for that claim?
On mine, they typically are similar to what you quoted.
You’re lucky, mine already has which sheets she wants me to use. :-)
Not necesarily. My father went into a nursing home after he had a catastrophic stroke that was beyond my ability to manage. It was paid for by Medicare, and he by that time no longer had any assets. Nevertheless the home came after me for eighty thousands dollars in charges. They were not successful but only because I was a divorced mother making a pittance and did not have any chance of paying such a charge. I inherited nothing to speak of from my father, so this was not losing an inheritance.
Very thoughtful of her. No sense in wasting the 600 count egyptian cotton ones. LOL!
No, what you should do is set up a trust for all your assets right now that will go into effect the moment you die. You will die penniless but the trust will disburse your assets to your kids or whoever.
“...but when we reach the limit, we will need to draw down her assets. After those are gone - she will then be eligible for Medicaid.”
Just a warning...depending upon the state you live, they may go back and “claw back” assets that were transferred in the preceding 5 - 7 years.
I thought it was illegal to attach the debts of a parent to a child? We’re venturing down the road of indentured servitude.
Medicare and Medicaid are different. Medicaid is a pure wealth transfer program. Medicaid patients have done nothing but exist and get sick. Medicare patients usually have paid into Medicare for decades.
“I’ll wait till I’m about dead, get a government backed reverse mortgage on my house, give the money to the kids and when I die, the government can repossess a house from a bank they backed the mortgage on.”
Gifts less than 5 years before you incur the expenses are considered fraudulent transfers and can be recovered from your kids.
Abathar, I agree with you 100% and have made that very clear in my pre-need planning documents, and I’ve relayed it to my spouse and children as well. Apart from some busy-body bureaucrat, there should be no questions, if/when the time comes.
If my time is up, let me go. Do NOT extend life if quality of life cannot be assured.
Agree. Take Medicaid, pay it back.
The heir cannot lose their own earned assets. There is something missing in your story.
Only because she has to carry your a$$ up there. You need to ask more detailed questions. :-)
I am not defending Medicaid. I detest all Federal entitlement programs. IMO, they are among the leading causes of the decline of this country, both financially & socially.
As a matter of personal responsibility, one should pay their own way. If you fall ill, young or old, isn't the medical bill yours to pay? Who else should be responsible for your medical care & its costs?
Lacking insurance, would you sell everything you own, if necessary, to preserve you own life or the life of your spouse or child, to buy the medical care necessary to restore health, even if there was a real possibility that care might NOT be successful? People do this all the time, even with insurance.
This issue is about inheritance, for you can't take it with you. I understand the tragedy of losing the family farm, land, historic home, etc. But, if there were no Medicaid, no insurance, nothing but fee for service, wouldn't many families sell those things to preserve the life of one of them? Many would, some would not. That is a family choice. But, no one has the right to ask the community to sacrifice, to pay the bills, so that they do not.
All of us are gonna die. For many of us, the end years will difficult, requiring care & supervision. The way to make this the least painful for everyone is not a bloated, corrupt Federal program. It is a prosperous society where responsible individuals & families are able to do for themselves what is best for them until the end.
FYI, there are exceptions to what the gubmint will take & ways around it if done years before Medicaid is possibly needed (give it away before they can take it), but they also take the soc. security benefits, & will go after recent, substantial gifts made to heirs. I went through some of this 10 years ago. It is tricky - see a financial guy familiar with Medicaid law long before the need may arise.
About Medicare and Social Secuirity...what is not fair about them is that if a person never is in those programs, because of death or not getting enough quarters, nobody gets the money paid in back, either to the estate or as a refund.
We’ll, I didn’t lose any assets. The point is, however, that I was harassed to pay a bill generated by services to my father, even though I had never undertaken any financial responsibility for him and never signed any paperwork relating to him or his care.
I believe that practice has been stopped by a judicial decision, but we have to re-locate the reference to confirm it.
Most unsettling. I would file a complaint with the court or some other venue to make this point and ensure a paper trail for these hooligans. Sounds similar to collection agencies. Which would make sense to “hit” the source will emotional. Good for you!!
bkmk
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