There is much confusion regarding the rules to qualify for Medicaid nursing home care in Louisiana. A common misconception is that retirement accounts (IRAs, 401k accounts, 403b accounts, etc.) are not countable as a resource (asset) when qualifying for Medicaid nursing home benefits. Some of the confusion arises from different rules that apply in other states. Many states exempt retirement accounts from countable assets. Unfortunately for Louisiana residents, retirement accounts are countable as a resource for Louisiana Medicaid nursing home eligibility purposes. Louisiana Medicaid Eligibility Rules for a Single Applicant The basic rule is an unmarried applicant is allowed to
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How Does Medicaid Spend-Down for the Nursing Home Work in Louisiana? The term spend-down is a term commonly used to describe what occurs when someone who resides in a nursing home does not qualify for Medicaid because they exceed the allowed asset amount (too much money, land, etc.). By paying for the nursing home out of pocket each month, the excess assets are spent-down to the amount allowed by Medicaid. Unfortunately going through a full spend-down results in depleting countable assets down to $2,000. In my experience most families prefer an approach to put the Medicaid recipient (and their spouse,
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How Does Medicaid Spend-Down for the Nursing Home Work in Louisiana? The term spend-down is a term commonly used to describe what occurs when someone who resides in a nursing home does not qualify for Medicaid because they exceed the allowed asset amount (too much money, land, etc.). By paying for the nursing home out of pocket each month, the excess assets are spent-down to the amount allowed by Medicaid. Unfortunately going through a full spend-down results in depleting countable assets down to $2,000. In my experience most families prefer an approach to put the Medicaid recipient (and their spouse,
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We received a number of questions recently from residents from the Houma-Thibodaux area with concerns about forced heirship. Over the years we have addressed many concerns regarding forced heirship from Louisiana residents and whether it applies to their estate plan. Forced heirship is unique to Louisiana and can dramatically impact your estate plan. Although the impact of forced heirship has changed over the years, it still applies to certain heirs as described herein. In Louisiana, your children are forced heirs if, at the time of your death, they have not attained age 24. Children of any age, who because of
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The past couple of weeks has brought much uncertainty for those relying on Medicaid to pay for long-term care and Home and Community Based Services in Louisiana. Due to the state’s inability to pass a budget, on May 10 the Department of Health and Hospitals sent letters to 37,000 Louisiana Medicaid recipients warning that their benefits may end July 1. Approximately 19,000 nursing home residents, 2,700 people with disabilities, 7,600 home health care patients, and 7,200 people receiving other Medicaid services were sent a one-page letter indicating their Medicaid benefits may end on July 1. It is my belief that
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The Louisiana Department of Health and Hospitals has updated key income and resource limitations for Medicaid Long-Term Care benefits. A single person can have no more than $2,000 of countable resources to qualify for Medicaid Long-Term Care benefits. Married couples both receiving Medicaid Long-Term Care benefits cannot have combined countable resources in excess of $3,000. There is no increase in these amount from 2017. The spouse of a Medicaid Long-Term Care recipient residing at home (known as the community spouse) is allowed to retain additional resources and income. These amounts are frequently increased each year. The Community Spouse is allowed
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Here are a few things to consider as you weigh potential tax moves between now and the end of the year. 1. Set aside time to plan Effective planning requires that you have a good understanding of your current tax situation, as well as a reasonable estimate of how your circumstances might change next year. There’s a real opportunity for tax savings if you’ll be paying taxes at a lower rate in one year than in the other. However, the window for most tax-saving moves closes on December 31, so don’t procrastinate. 2. Defer income to next year Consider opportunities
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