CHAPTER 9: MEDICARE UPDATE
The 2006 figures for a stay in a skilled nursing facility (i.e., a
nursing home) under the Original Medicare Plan are as follows:
You pay nothing for the first 20 days of skilled nursing care and
$119 for days 21-100; i.e., you pay up to $9,520 for the next 80
days of a stay in a skilled nursing facility.
You are responsible for all costs thereafter.
The 2007
Medicare value for a stay in a skilled nursing facility for days 21
through 100 is $124 per day.
In 2008, those on the original Medicare plan will pay:
$128 per day for days 21-100 in a skilled nursing facility for
each benefit period. This is $4 higher than the 2007 value.
CHAPTER 10: MEDICAID UPDATE -
CHANGES MADE IN 2007
The 2007 values set by the Federal Government are:
The maximum Community Spouse Resource Allowance is $101,640.
The Minimum Community Spouse Resource Allowance is
$20,328.
Community Spouse Maximum Monthly Maintenance Needs
Allowance is $ 2541.
Community Spouse Minimum Monthly Maintenance Needs Allowance
is $1650.
Excess Shelter Allowance Amounts Above $495.
Income cap value $1869.
The 2007 private pay rate to determine the penalty
period of ineligibility is $117.08 PER DAY.
As of Feb, 2007, the Texas legislature has opted for the
$500,000 homestead equity exemption (see below).
NO TEXAS ESTATE TAXES UNTIL 2011
The Texas Estate Tax is called a "pick up" tax, because
the state collects the tax that would have gone to the federal
government had it not been for a credit allowed on the Federal
Estate Tax return for death taxes paid to the state (Tax 211.051,
211.055). The Economic Growth and Tax Relief Reconciliation Act of
2001 amended the Internal Revenue Code to provide that an Estate
cannot claim a credit for state death taxes for those who die after
December 31, 2004. Because no credit is allowed for state death
taxes on the federal Estate Tax return, there is no Texas Estate Tax
for the years 2005 through 2010. In the year 2011 and beyond, the
federal Estate Tax exclusion is scheduled to be $1,000,000, with the
state credit for federal Estate Tax restored. If there are no
changes to the law, Texas will, once again collect a portion of the
federal Estate Tax.
CHANGES MADE BY
CONGRESS IN 2006
Congress passed the following changes to the Medicaid law:
FIVE YEAR LOOK BACK
The Look-back period is extended from three years
to five years.
PENALTY
PERIOD STARTS WHEN YOU APPLY
Under the prior Medicaid law the Penalty Period
started from the day the transfer was made. Under the new law the
Penalty Period begins on the day the Applicant applies for Medicaid,
meaning that the Penalty clock doesn’t start ticking till the
Applicant actually applies. For example, if a person makes an
uncompensated transfer during the five year period before he applies
for Medicaid, the Penalty Period will begin as of the day he applies
for Medicaid.
HOMESTEAD WITH EQUITY OF $500,000 OR MORE
If the equity in the Applicant’s home (current
market value less mortgages and liens) is equal to $500,000 or more,
he will not be eligible to receive Medicaid benefits. States are
given the option of increasing this value to $750,000 or more.
These changes need to be adopted by the states,
so it may take several months before these laws are put into effect.
Check with an Elder Law attorney to determine the status of the
Medi
caid