is there a medicaid asset in connecticut
TRANSCRIPT
Is There a Medicaid Asset Limit in Connecticut? www.preserveyourestate.net 1
IS THERE A MEDICAID ASSET LIMIT IN CONNECTICUT?
“Before we look at the Medicaid program and the matter of
assets, we should provide some background information
with regard to why Medicaid may be relevant to you as a
senior citizen.”
BARRY D.HOROWITZ Connecticut Estate Planning Attorney
Is There a Medicaid Asset Limit in Connecticut? www.preserveyourestate.net 2
The Most people will qualify for Medicare coverage eventually. At the
present time, the age of eligibility for Medicare is 65.
You qualify for Medicare through the accumulation of retirement credits.
You get these credits while you are working and paying FICA or self-
employment taxes. The maximum annual accrual is four credits, and the
requirements are modest. In 2015, you get one credit for every $1220 that
you earn.
Once you have at least 40 retirement credits, you will qualify for Medicare
when you reach the eligibility age.
Medicare is certainly going to help with your medical expenses when you
attain senior citizen status if you are eligible. However, it does not cover
everything in full, and there is one very big hole in the coverage.
Is There a Medicaid Asset Limit in Connecticut? www.preserveyourestate.net 3
The Medicare program does not pay for long-term care. Since the majority
of elders will need living assistance at some point in time, this is something
that is relevant to all of us.
This gap is considerable, because long-term care is extremely expensive.
We practice law in the greater Hartford, Connecticut area. In our area of
the country, the median annual cost for a private room in a nursing home is
$160,600.
Is There a Medicaid Asset Limit in Connecticut? www.preserveyourestate.net 4
MEDICAID ELIGIBILITY
Now that we have laid the groundwork, we can look at Medicaid and the
Medicaid eligibility parameters.
Medicaid is a jointly administered federal/state government health
insurance program that does pay for long-term care. It actually pays for
most of the nursing home care that is being received by seniors in the
United States
The Medicaid program is only
available to people who can
demonstrate a significant level of
financial need. As such, there is indeed
an asset limit. For a single individual,
this limit is $2000.
The $2000 limit is certainly attention-
getting, but fortunately, some things
that you own are not countable. The
biggest asset that is not counted is
your home, but in Connecticut, there
is an equity limit that stands at $828,000 during the current calendar year.
We should point out the fact that there is no equity limit at all if a healthy
spouse is remaining in the home while his or her spouse enters a long-term
care facility.
Is There a Medicaid Asset Limit in Connecticut? www.preserveyourestate.net 5
In addition to your home, one car that is used as a primary source of
transportation is not looked upon as a countable asset. Your engagement
ring and your wedding ring are not counted, and the heirloom jewelry that
you have in your possession would not be counted either.
You are allowed to
retain ownership of a
whole life insurance
policy valued at up to
$1500, and you can
have unlimited term
life insurance.
We previously
touched upon the fact
that your spouse could retain ownership of the family home with no equity
limit if you were to apply for Medicaid to pay for long-term care. This is not
the only benefit that is afforded to a healthy spouse.
A healthy spouse is also entitled to a Community Spouse Resource
Allowance. This would equate to half of the shared assets that are
considered to be countable, but there is a limit of $119,220 in 2015.
There is also a minimum Community Spouse Resource Allowance of
$23,844. Even if this figure represents more than half of the shared
countable assets, this is the minimum that a healthy spouse could retain.
Is There a Medicaid Asset Limit in Connecticut? www.preserveyourestate.net 6
SUMMARY
The majority of senior citizens will qualify for Medicare as a source of
health insurance. However, the Medicare program does not pay for long-
term care, and most elders will eventually need help with their activities of
daily living.
Medicaid does pay for long-term care, and it is the solution for most
seniors. However, there is a limit on countable assets that stands at $2000
for an individual.
People often give countable assets to their loved ones so that they can
qualify for Medicaid. This takes careful planning, because program rules
are complex. You are penalized if you give away assets within five years of
applying. To get all the details, schedule a consultation with a licensed elder
law attorney.
REFERENCES
Genworth Financial https://www.genworth.com/corporate/about-genworth/industry-expertise/cost-of-care.html LongTermCare.gov http://longtermcare.gov/
Is There a Medicaid Asset Limit in Connecticut? www.preserveyourestate.net 7
About the Author
Barry D. Horowitz
Barry D. Horowitz is a founding partner in the law firm of
Nirenstein, Horowitz & Associates, P.C. He received his
diploma from the Loomis Chaffee School and his Bachelor
of Arts from Bennington College, where he dual majored
in philosophy and music.
Mr. Horowitz was awarded his Juris Doctor degree with
honors from the University of Connecticut School of Law.
While attending law school, Mr. Horowitz received the
American Jurisprudence Award in Legal Ethics and the
Nathan Burkan Award.
After graduation from law school, Mr. Horowitz continued his legal education at New
York University School of Law where he received a Post Doctorate Law Degree in
Taxation. He has also recently received a national achievement award.
Mr. Horowitz is admitted to practice before all the state courts in the State of
Connecticut and the United States District Court. He is a member of the Hartford
County Bar Association, a charter member of the American Academy of Estate Planning
Attorneys, and has recently received the American Academy Award. Mr. Horowitz is
also an active member of the Connecticut Bar Association where he is a member of the
Elder Law Section, the Estate Planning and Probate Section, and the Professional Ethics
Committee. Mr. Horowitz practices exclusively in the area of Estate Planning where he
has earned a reputation as a dynamic and entertaining speaker. He also has recently
published a book entitled “Guiding Those Left Behind in Connecticut.”
Nirenstein, Horowitz & Associates, PC Living Trust and Estate Planning Attorneys Serving the State of Connecticut with Offices in Greater Hartford, Fairfield County, CT www.PreserveYourEstate.net HARTFORD WESTPORT Gothic Park 191 Post Road West 43 Woodland St., Suite 520 Westport, CT 06880 Hartford, CT 06105 Phone: 203-221-2617 Phone: (860) 548-1000