Certain Transfers Won't Penalize You From Louisiana Medicaid Eligibility

If you or a loved one made a transfer of resources, you have the right to rebut the presumption that the transfer was made to become Medicaid eligible. You must present convincing evidence that the transfer was exclusively for another purpose.

The presence of one or more of the following factors may indicate that the resource was transferred exclusively for a purpose other than to qualify for assistance:

• If after the transfer the individual experienced:
  1. an unanticipated, drastic change in his health which resulted in a greatly increased need for medical care,
  2. the unexpected loss of other resources which would have made him ineligible for assistance, or
  3. the unexpected loss of income which would have made him ineligible for assistance.
• The value of the transferred resource was less than the average private facility payment.
• The transfer was made as a result of a court order or other legal commitment.

Let's say, for example, that Dad buys a house for his son in order to help his son start a new life. Dad pays $160,000 for the home and Dad puts the home in his son's name. Dad's remaining countable resources total $100,000. A month later, Dad has an unanticipated severe stroke that requires that he move into a nursing home. Dad then spends the $100,000 on his care. Dad, it seems, would have authority to state that he is eligible for Louisiana Long Term Care Medicaid because the purchase of the house for his son was not done to become Medicaid eligible.

If, however, it is ruled that Dad bought the house for the son to become Medicaid eligible, the Dad will be ineligible for Medicaid for another 40 months ($160,000 divided by $4,000) with no funds remaining to pay for his care.

Time is of the essence. You must make an effort to rebut the presumption within seven working days after the Notification of Transfer of Resources Determination is mailed.

If you want to know more about whether you or a loved one will qualify for Louisiana Long Term Care Medicaid, send me an e-mail at paul@rabalaislaw.com, and I'll be happy to review it with you.

Paul Rabalais