Top 10 things you need to know about Florida Nursing Home Medicaid:
- Your homestead is protected from creditors. Creditors include the nursing home and Medicaid liens (not so in other states, like Ohio, that force you to sell your house if you or your dependent do not lived in it for at least 6 months, in which case, it must be sold and the proceeds of the sale must go to pay for your care). If someone tells you that the nursing home took their family member’s home, do not listen because it is very likely they lived in another state or there is some other story behind what they have not told you.
- Florida is an “income cap” state which means, if your income exceeds $2,130 (in 2013), you will not qualify for Medicaid. However, there is still hope because even if your income is too high, you (or your spouse or agent under your power of attorney) can create a qualified income trust.
- Florida Nursing Home Medicaid: You do not need an attorney to file for Medicaid. The nursing home can do it. Even a family member can do it. But, beware – the application can be very confusing and time-consuming, and in the end, it may have been worth it to pay an attorney to help you.
- A community spouse (the person who continues to live at home) can keep up to $115,920 (in 2013) in assets, in addition to the homestead and a vehicle.
- An individual applying for Medicaid may only keep $35/month as a personal needs allowance – that’s to pay for haircuts, toiletries, clothing, etc. (which Medicaid doesn’t pay for).
- The person applying for Medicaid cannot have more than $2,000 in assets in their name when they apply.
- Retirement accounts, such as IRA’s and 401(k)’s, do not count as “assets” if the person is taking the required minimum distributions. Then, they are only considered “income”.
- In order to qualify for Medicaid, they evaluate your assets and your income. The individual applying for Medicaid cannot have more than $2,000 in assets and no more than $2,130 in income.
- If you have a spouse, you can transfer all your assets to the spouse to get below the $2,000 asset limit, however, you cannot transfer to anyone other than a spouse without incurring transfer penalties and triggering the look-back period.
- Remember, gifts to anyone, other than your spouse will trigger the five year look-back period, you will be penalized for a certain period of time and thus, not be eligible for Medicaid benefits.
Laurie Ohall is a Board Certified Florida Elder Law Attorney. To learn more about Florida Elder Law and issues affecting seniors, please contact the Law Offices of Laurie Ohall.