When to file the Medicaid application for a loved one with Parkinson’s or Alzheimer’s disease can be a difficult question to answer, thanks to the complicated Medicaid laws and regulations. The Deficit Reduction Act of 2005, or DRA, is a federal bill that changed many of the rules for applying and qualifying for Medicaid, and complicates matters further.
One of the major changes the DRA made was in regards to what is known as the look back period. The look back period is the time frame in which Medicaid can look back through your finances to ensure you meet the rules for qualifying for benefits.
Another change affects the penalty periods. Penalty periods are time frames during which an applicant is not eligible for Medicaid due to violation of a Medicaid rule. Most commonly, penalty periods happen because in the look back period the applicant made a gift of assets. Often, this is an innocent act, as the applicant had no idea they would fall ill. The DRA intends to protect Medicaid from people who would give away large sums of assets just for the purpose of qualifying. Regardless of the intent, the period of months assigned as a penalty can cause major complications and financial burden for the families of loved ones needing the benefits.
Ideally, this should serve as a reason for seeking help from a qualified Cleveland elder law attorney years in advance of needing Medicaid. Unfortunately, few people think that way. Because of this, it is imperative you seek legal guidance before applying for Medicaid to minimize the impact of complications caused by the DRA.
