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She has been living in assisted living since Feb 17. They told us that Medicaid will start July 1, 2018. It will not pay back to Feb 17, 2018. Furthermore, her house was appraised for 69,000.00 and sold for her mortgage payoff which was 65,088.00. Medicaid told us that beginning July 1, 2018 and until we make up the appraised value of 69,000.00 they will not pay anything either. So they are not paying from Feb 17, 2018 until July 1, and they are not paying the first 69,000.00 from July 1. How do I fight this when we sold her house for 65,088. The bank informed us that we were close enough to the appraisal value to be ok with Medicaid. I am so disgusted right now. Can any body help me understand or make a suggestion?

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Sometimes it helps to speak to someone else at Medicaid, too; worked for us with the electric coop - saved us $2500.
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I think Medicaid misunderstands that there was a mortgage involved. The difference of 3000 is close to the Market value. They cannot expect the $69k because MIL had no equity in the house. You need to get them a copy of the settlement showing the bank got the proceeds. And sorry, but I guess MIL would have to pay the previous months private pay. You may want to find out why Medicaid is not paying the previous months. You in the end may have to get a lawyer.
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To make certain everything is above-board and legal and you are availing yourself of every option, contact an Elder Law Attorney who specializes in Medicaid. Many of them will allow you a free initial consultation.
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