Houston Medicaid Planning Attorney Whitney L. Thompson Explain Medicaid Penalty Period Avoidance

July 14, 2022 at 16:24

Harris, Texas -

Houston Medicaid planning attorney Whitney L. Thompson releases a new article (https://www.wthompsonlaw.com/medicaid-penalty-period-avoidance/) explaining the meaning of Medicaid penalty period avoidance. The lawyer mentions that if a person wants to receive federal assistance through Medicaid for nursing home care, they must be able to meet the income and asset qualifications. Before an application is accepted, an individual’s financial transactions are reviewed by the Medicaid administering agency.

“Forty-nine of the fifty states have a look-back period of five years (or sixty months). The exception is California, with a thirty-month look-back period. This period of Medicaid ineligibility is a penalty period with no maximum. To determine the penalty period, Medicaid takes the dollar amount of assets transferred and divides it by the daily private patient rate of nursing home care or the average monthly private patient rate,” says the Houston Medicaid planning attorney.

The lawyer explains that there can be look-back exceptions and exemptions, particularly for families in difficult situations. The federal government’s annual tax exclusion amount per recipient is $16,000 in 2022. However, Medicaid does not consider this transaction exempt from its look-back period. Even birthday gifts or other special occasions like holidays or weddings may result in a Medicaid penalty.

Attorney Whitney L. Thompson says that if a person transacts an asset and receive a value equal to the fair market value without proper documentation, they may violate the rules of the look-back period. This situation can be particularly relevant for assets with a government record like boats, motorcycles, or vehicles because of their registration requirements.

“Because Medicaid is a federal and state program, look-back rules vary by state. Even the penalty divisor amount varies by state because the average cost of nursing home care varies. Some states calculate using a monthly average penalty divisor, while others use a daily average penalty divisor. In New York, the rules governing asset transfer under fair market value do not include home care, sometimes called community care. Instead, they only apply regarding nursing home care,” says the estate planning attorney.

Lastly, the lawyer emphasizes the importance of having a skilled probate attorney when dealing with matters involving Medicaid planning. Having an experienced estate attorney may be able to help an individual understand their rights and help them prepare for the future of their loved ones.

About The Law Office of Whitney Thompson, PLLC

Attorney Whitney Thompson is an experienced family law attorney who helps clients deal with family law matters such as divorce or legal separation. Attorney Thompson also deals with guardianship, probate, and estate planning matters. As an experienced divorce lawyer, attorney Thompson and her legal team have helped families have a smoother divorce process and plan for their future more thoroughly. To schedule a consultation, call (281) 214-0173.

The Law Office of Whitney L. Thompson, PLLC

4201 Farm to Market 1960 Rd W Suite 320, Box #116B, Houston, TX 77068, United States

(281) 214-0173

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The Law Office of Whitney L. Thompson, PLLC
Whitney L. Thompson
+12812140173
info@wthompsonlaw.com
The Law Office of Whitney L. Thompson, PLLC
4201 Farm to Market 1960 Rd W Suite 320, Box #116B, Houston, TX 77068, United States