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 is otherwise eligible and 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
Medicaid law in Wisconsin.
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: Effective 1/1/05
The federal and state governments have increased the Community
Spousal Resource Allowance to a maximum of $95,100 and a minimum of
$19,020. They increased the Minimum Monthly Maintenance Needs
Allowance to $2,378.
The average cost of nursing care
used by the state of Wisconsin in 2006 is $5,339. This is the value
used as a divisor to compute the Penalty Period for an uncompensated
transfer.
CHANGES MADE IN 2007
The maximum Community Spouse Resource Allowance is $101,640.
The Minimum Community Spouse Resource Allowance is $50,000.
Community Spouse Excess Shelter Allowance is $606.
Community Spouse
MAXIMUM Monthly Maintenance Needs Allowance is $2,541.
The Community
Spouse MINIMUM Monthly Maintenance Needs Allowance is @$2,200.
The 2007
private pay rate to determine the penalty period for uncompensated
transfers is $5584.
As of Feb, 2007, the Wisconsin legislature has
not opted for either the $500,000 or $750,000 homestead equity
exemption.
