We are applying for Medicaid but need to spend down $30,000.00 in the checking account, and will probably be penalized for about $20,000 that was gifted within past 5 years. Long-term care is $10,000/mo. Does that mean we pay for 5 months before we qualify? ($50,000.00 divided by $10,000.00)
Say your state Medicaid pays a NH $185.00 a day R&B reimbursement. The amount of $ gifted by your elder within the 5 yr lookback was $25,000.00. 25K divided by $185 = 135 DAYS of ineligiblity. So basically 4 & 1/2 months of ineligiblity. Penalty date starts the day she signed off and filed for LTC Medicaid is my understanding.
Medicaid daily reimbursement figure is very important. Some states pay a low figure, like $165 a day, so will take longer to get past, while others pay over $300 a day, so penalty goes quicker.
Now there’s another rub in this; for the # of days of ineligiblity, the NH can determine if they are willing to accept the lower Medicaid day rate or if they want to charge you the full daily private pay rate. It seems to be open to some degree of negotiation. If you know going into the NH, that a penalty is looming for when she applies for Medicaid and she has a spend down to do before even applying for Medicaid, I’d try to have this worked out before you sign off on her admissions contract. If there is an obvious penalty, the place is likely to want you to personally sign off to be financially responsible for her bill.