Posts Tagged ‘Deficit Reduction Act’

With all of the constant changes in the Medicaid laws, seniors and their families need to keep up-to-date to make sure their care needs are provided for.  In this post I hope to highlight some of the important recent changes:

1.   Estate Recovery – While the estate recovery law that permits the state to “take” the home was passed in September of 2007, the law is not currently being enforced.  However, the state is working with the federal government to find a version that will be approved by the federal government.  Apparently Lansing is working on some additional legislation.  When that passes and is approved it can be applied for care costs dating retroactively back to September of 2007. (more…)


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A recent case in Connecticut shows how the fallout from the new Deficit Reduction Act is hurting not only nursing homes and their residents, but the residents’ families as well.  In the case of Glastonbury Healthcare Center, Inc. v. Esposito, the nursing home successfully sued the adult son of a resident for over $100,000.  This has sent up a loud warning for those families who are tempted not to plan ahead for their long term care needs.  It also sends a warning to facilities that assume patients can handle the Medicaid process without professional help.


In the Esposito case the adult son, Carmine Esposito, signed an Admissions Agreement when his elderly mother entered the nursing home.  He signed it under the power of attorney from his mother.  He did not sign it personally as the Responsible Party.  Among other things, this document contained the provision that the Responsible Party agrees to “act promptly and expeditiously to establish and maintain eligibility for Medicaid assistance.”  (more…)

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Persons faced with the possibility of a nursing home stay in the near future have in the past transferred a certain amount per month out of their name.   That was a legal possibility under the old law.  It is not under the new law.

Under the old law, the state set a monthly “divisor” amount.  This is based upon the average cost of one month in a nursing home and is currently about six thousand dollars ($6000).   Thus, for every $6000 a person transferred out of their name, the state would impose a one month penalty.  During that penalty period the person could not get Medicaid.  In Michigan, all fractions were dropped.  That meant that if anything less than 1 was transferred, there would be no penalty at all.  For example, if a person transferred $5400, that is .9  of the $6000 divisor.  Since the Michigan law said that all fractions should be dropped, there was no penalty.  If the person transferred $11,400, or $6000 x 1.9, the fraction would be rounded off to 1, and there would be only a one month penalty.  (more…)

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