Applying for Medicaid is a difficult process. Since the application process requires a detailed accounting of all of financial information you have over a certain period of time, you are going to need to have records of all financial transactions. A lifetime of saving typically yields a complex mix of bank, retirement, pension and savings accounts. That is why you might want to consider streamlining your records for the Medicaid application process.
The Look-back Period
Medicaid is a needs based program. Unfortunately it is also the only program that will pay for long term care. This means that any family with an elderly loved one who might face long term care is going to need to apply.
The application process requires accounting of all financial transactions over what is called the lookback period. This is the period of time that Medicaid looks at to see that there were no large gifts or other transfers of funds to other parties. If there were, then those transactions can be held against the applicant. Missing records can lead Medicaid to believe that money or assets were moved which can disqualify an applicant from being approved.
Streamlining your Accounts Helps the Application Process
While it may have made sense while you were both working to have separate checking and savings accounts, it makes less sense in retirement. The same can be said for investment accounts, IRAs or any other source of funds that can be consolidated.
Once you are retired you should also begin keeping yearly folders that contain all of the documentation sent to you about your financial accounts. This is just preparing for the future application process.
Contact Stano Law group for assistance in applying for Medicaid benefits.