Applying To Medicaid As A Married Couple Can Be Complex

When a person over the age of 65 decides to apply for Medicaid benefits, it can be a surprise to learn that in most cases, a married couple is treated as a unit for the purposes of income and other financial information. In some ways, seeking long-term care benefits as a married person is infinitely easier than doing so as a single person – but this is not always the case, and sometimes the benefits of being a married couple do not apply to one spouse’s application for Medicaid. Consulting a knowledgeable Westchester County attorney can help to clarify issues.

Increased Asset Limits & Transfers

While a married couple may have to jump through more hoops than a single person, they are granted certain advantages during the application process. Perhaps the most notable is the increased asset limit. When a single person applies for Medicaid for long-term or end-of-life care, they must have no more than $1,732 per month in income, and no more than $31,175 in assets to their name (with certain exceptions). A married person, if they are the only one filing, must meet the same limits – but, unlike a single applicant, their spouse may retain up to $154,140 in assets in their own name.

Another potential advantage of being married in this type of situation is that spouses may transfer assets between each other without incurring any kind of “lookback” penalty. Medicaid has what is known as a “lookback” period, during which any asset transfer will be scrutinized to ensure that it was conducted appropriately. Any asset transfer made below market value or gifted improperly will trigger a penalty period, during which care will not be covered. Spouses, however, are the exception to this rule.

Is “Spousal Refusal” Necessary For You?

Sometimes, even after the spouse seeking Medicaid care has transferred their assets to their counterpart (referred to sometimes as the “community” spouse), they may have too much to their name to qualify for Medicaid, and they cannot generally transfer those assets to anyone else without incurring a penalty from Medicaid. One possible answer is for the community spouse to execute what is known as a ‘spousal refusal.’ A spousal refusal is when the community spouse makes it clear that they will not make assets available to support the spouse who is currently seeking Medicaid.

That said, this can be an extremely double-edged sword for both spouses. While a spousal refusal will effectively force Medicaid to care for the spouse seeking benefits, the downside is that after the fact, authorities then have the right to file suit against the community spouse for reimbursement – and, in some cases, will do so very aggressively. Consulting with an elder law attorney can help ensure that you and your spouse make the best possible choices for your situation.

Contact A Putnam County Elder Law Attorney

Applying for Medicaid is a difficult process, whether single or married, but a married person has certain options that a single person may lack. If you have questions or concerns about your own Medicaid application, a Westchester County estate planning attorney from Meyer & Spencer, PC may be able to help get them managed. Contact our office today at (845) 628-0009 to schedule an initial consultation.

Source:

medicaidplanningassistance.org/medicaid-eligibility-new-york/