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Jan 18
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Co-pays proposed as part of $166M in Medicaid cuts

By News, Uncategorized

Co-Pays and Not Changes to Eligibility Proposed

Gov. Gina Raimondo has proposed balancing next year’s $9.38-billion budget with nearly $166 million in cuts to Medicaid. None of the changes will affect eligibility or benefits, officials said. Co-Pays and other cost reducing strategies will be implemented.

A plan to “rebalance” long-term care and nursing home services would account for another $18.2 million in savings. That includes “modernizing” the eligibility process for long-term care. The budget also calls for a 1-percent increase to nursing home reimbursement rates. In recent years, those rates have seen as much as a 3-percent increase.

Asked if he expected backlash from the nursing homes, Beane said, “I think, frankly, the nursing homes will be pleased to see that some part of the COLA is going to be included here. That’s the first time the governor’s proposed budget has included an increase. She has said in her cover letter to this budget that if revenues are up, this is an area she’d like to see more investment.”

Source: Co-pays proposed as part of $166M in Medicaid cuts

As the long term care insurance market continues to struggle with its future, knowledge as to the rules of Medicaid eligibility that will pay for long term skilled nursing is critical. Individuals can only have $4,000 of countable resources to qualify for Medicaid. Your home, car and personal property is not a countable resource and is protected. Under the proposed budget, those rules appear to remain unchanged. However, what are you to do with savings, investment accounts, a second home or investment property? Will you be forced to liquidate those assets and spend them down on my long term nursing care below $4,000 before I qualify for Medicaid? Without  a plan and proper advice, the answer is likely yes for most. However, with a proper plan, these assets can be protected for yourself, your spouse and your heirs. Contact us to discuss how.

Mar 04
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Major Changes Proposed to Massachusetts Medicaid! Will Rhode Island Follow?

By Uncategorized

Massachusetts Medicaid is called MassHealth

Massachusetts Governor Baker’s FY2017 budget proposes a significant  amendment to Massachusetts General Laws chapter 118E to expand the types of property the Commonwealth can seek reimbursement for Medicaid a/k/a MassHealth benefits paid on behalf of certain deceased MassHealth recipients. Expanded estate recovery, as described in Outside Section 11.

source: Boston Magazine

Governor Baker

  • Under current law, the Commonwealth can be reimbursed for MassHealth coverage of nursing home care and community based care provided to persons age 55 and over, from property in the recipient’s probate estate. Federal law requires state Medicaid agencies to file claims against probate estates. Federal law does not mandate recovery against non-probate assets.
  • Similar legislative changes have been rejected twice by the Legislature.

Proposed Change:

  • The Governor proposes to dramatically expand the MassHealth asset recovery by allowing claims against any property in which the decedent had any legal title or interest immediately prior to death.
  • This would expand the pool of assets from which the Commonwealth could seek reimbursement to the decedent’s interest in jointly owned personal and real property, property in which the decedent held only a life interest, and possibly even to property held in a trust of which the decedent was a beneficiary during life.
  • The administrative costs for expanding estate recovery could be astronomical for MassHealth, potentially outweighing the benefits to the program.

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What this Means To You:

  • If enacted into law, Medicaid planning as it has been known and performed and understood in Massachusetts will be forever changed.
  • Ambiguities in the statute language may create questions of law as to what assets may be included in expanded estate recovery, creating possible issues with real estate titles and title insurance claims.
  • Existing estate plans and new estate plans will need to be reviewed to understand the impact of the potential new change on each individual and couple’s plans.

Want To Lean More?

Contact our office for a consultation to discuss how this may impact you and your estate plan.

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