how to circumvent medicare asset issues

How do I talk to a real person at Medicare?

Sep 23, 2020 · 4. You must add supplemental plans if you want to cover the 20% gap not covered under Part B. “I strongly advise against maintaining only Parts A and B coverage,” says Petruso. “There is no cap on what you may be charged with only Part A and B. Simply put, if you were billed $100,000 for a Medicare-approved surgery and Part B covered 80%, you would be responsible …

When to call 1-800-MEDICARE for Medicare questions?

Call 1-800-MEDICARE (1-800-633-4227) Biggie Productions / Getty Images. You can call 1-800-MEDICARE and speak with a representative to ask questions about Medicare or get help resolving problems with Medicare. We made a test call to this number and were greeted by a polite Medicare representative after being on hold for about 90 seconds.

What are Medicaid asset protection trusts (MAPT)?

What happens if you don’t have a Medicare number?

What assets are exempt from Medicare?

Can you get Medicare if you have assets?

Do I have to pay back Medicare?

Does Medicare look at your bank account?

What is the income limit for extra help in 2021?

Why do doctors not like Medicare Advantage Plans?

How do you qualify to get 144 back from Medicare?

How do I stop Medicare set aside?

How to get help with Medicare?

You can educate yourself using the Medicare Rights Center website, or get personalized counseling using the helpline available Monday-Friday at 1-800-333-4114.

How to ask questions on Medicare?

You can ask questions by using the live chat function accessed via a link near the top of the page. Using live chat, you and a Medicare representative converse by typing questions and answers into a pop-up box. I tried this myself and was assisted within 30 seconds by a knowledgeable representative even though it was 6:00 p.m. on a Saturday.

What is Medicare Rights Center?

The Medicare Rights Center is a non-profit organization dedicated to helping Americans understand their Medicare rights and benefits, navigate the Medicare system, and get quality health care. It does this using the extensive library of information available on its website as well as through a telephone helpline.

How to contact Medicare by phone?

Call 1-800-MEDICARE (1-800-633-4227) You can call 1-800-MEDICARE and speak with a representative to ask questions about Medicare or get help resolving problems with Medicare. We made a test call to this number and were greeted by a polite Medicare representative after being on hold for about 90 seconds.

What is the difference between Medicare.gov and MyMedicare.gov?

The information available on the MyMedicare.gov website differs from Medicare.gov in that it’s specific to you. You’ll be able to see your Medicare Part A and Part B claims as well as get quality information about your doctors, hospitals, and other healthcare providers.

What is Medicare.gov?

Medicare.gov is the official government website about Medicare. There are lots of private sites devoted to Medicare information and sales—some are very reputable, although some are not. But only the government website has the dot-gov domain name. 5.

Does Verywell Health use peer reviewed sources?

Verywell Health uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.

What are some examples of Medicaid debt?

Examples include credit cards, mortgage payments, medical bills, taxes, car payments, rent, utilities, and the costs of home or car maintenance.

What is Medicaid needs based?

Medicaid is a "needs-based" program, and a successful Medicaid applicant must have insufficient assets to pay for one's own care. Federal law establishes a benchmark for the amount of resources an individual may own to qualify for the program. The process of reducing the value of your assets to qualify for Medicaid is referred to as "spending ...

Can you make a home improvement payment on Medicaid?

A Medicaid applicant can make any needed payments to maintain or improve a noncountable asset. An example is to make home improvements or repairs to an exempt home. Plumbing repairs, home improvement projects, repairs to a roof, installation of a new roof, landscaping, and additions to a home are all allowable expenses for an exempt home. Likewise, repairs to an automobile are allowable expenses.

Does an annuity have to be nontransferable?

But in order for an annuity to work as a way to spend down resources, it must meet certain requirements; for example, the annuity must be nontransferable and your state's Medicaid agency must be listed as the primary beneficiary after the death of your spouse.

Can you be paid in advance for a caregiver on medicaid?

Medicaid will not allow for a caregiver to be paid in advance for services not yet provided. A pre-payment for services not yet provided will be treated as a gift, and will result in a period of Medicaid ineligibility.

Is spending down your money on Medicaid acceptable?

Permissible Expenses. Spending down your money and assets on the following expenses is ordinarily acceptable by most states' Medicaid programs. Each state is different, however, so these examples are given for illustration purposes only.

Can you spend down Medicaid?

Spending down your money and assets on the following expenses is ordinarily acceptable by most states' Medicaid programs. Each state is different, however, so these examples are given for illustration purposes only. You should look into your state's law or consult an estate planning lawyer before engaging in any of these spend-down methods.

What is the shielding asset for Medicaid?

Shielding assets for Medicaid: The note and loan strategy. The Deficit Reduction Act (DRA) of 2005, signed into law by President George W. Bush on February 8, 2006, is a federal law designed to severely restrict Medicaid eligibility by radically changing the transfer of asset rules. More particularly, the law seeks to eliminate altogether transfer ...

What is the last minute transfer of assets?

More particularly, the law seeks to eliminate altogether transfer of asset strategies at the so-called “crisis” phase, that is, last-minute transfers of assets just prior to or immediately after placement in a long-term care (LTC) facility. However, the federal law left open one planning strategy in particular: planning via a “note and loan.”.

Is Medicaid planning a note and loan?

However, the federal law left open one planning strategy in particular: planning via a “note and loan.”. In this climate of ever more stringent Medicaid eligibility rules, it is critical for facilities to understand the asset protection/Medicaid planning techniques employed by facility residents and prospective residents as a means ...

What is a Medicaid asset protection trust?

Medicaid Asset Protection Trusts (MAPT) can be a valuable planning strategy to meet Medicaid’s asset limit when an applicant has excess assets. Simply stated, these trusts protect a Medicaid applicant’s assets from being counted for eligibility purposes. This type of trust enables someone who would otherwise be ineligible for Medicaid ...

How long does Medicaid look back?

This is because MAPTs violate Medicaid’s look back period. This is a period of 60-months in all states, with the exception of California, which only looks back 30-months. (New York is in the process of implementing a 30-month look back period for long-term home and community based services). During the look back period, Medicaid checks to ensure no assets were sold or given away for less than they are worth in order for one to meet the asset eligibility limit. For Medicaid purposes, the transfer of assets to a Medicaid asset protection trust is seen as a gift. Therefore, it violates the look back rule. This can result in a period of Medicaid ineligibility. Therefore, a MAPT should be created with the idea that Medicaid will not be needed for a minimum of 2.5 years in California and 5 years in the rest of the states.

What is look back on Medicaid?

During the look back period, Medicaid checks to ensure no assets were sold or given away for less than they are worth in order for one to meet the asset eligibility limit. For Medicaid purposes, the transfer of assets to a Medicaid asset protection trust is seen as a gift. Therefore, it violates the look back rule.

What are some alternatives to Medicaid?

Alternatives to a Medicaid Asset Protection Trust. In addition to Medicaid asset protection trusts, there are other planning strategies to help lower one’s countable assets. These may include funeral trusts and annuities. In addition, there are also strategies to help lower one’s income to become eligible for Medicaid.

What type of trust is used for Medicaid?

There are several other types of trusts that are relevant to Medicaid eligibility, but will not be covered in this article. Irrevocable funeral trusts, also known as burial trusts, are used to protect small amounts of assets specifically for funeral and burial costs.

Is a home in a trust considered a Medicaid asset?

As mentioned above, Michigan considers a home in a trust, even if it is irrevocable, a countable asset. California Medicaid (Medi-Cal), on the other hand, has very lax rules in regards to transferring a home to a trust. In CA, a home, even in a revocable trust, is exempt from Medicaid’s asset limit and is safe from estate recovery. This is very unusual. In most circumstances, revocable trusts do not keep assets safe from Medicaid’s asset limit and estate recovery. In addition, in CA, the state can only seek reimbursement of long-term care costs from those assets that go through probate (a legal process where a deceased person’s assets are distributed). If assets have been transferred to a revocable living trust, it is safe from estate recovery. This means it will avoid probate and estate recovery and the need for MAPTs are not as great in the state of CA as in other states.

Is gifting assets a legal requirement for Medicaid?

Gifting Assets vs. Creating a Medicaid Asset Protection Trust. While there is more flexibility with gifting assets and it does not require any legal work, it also violates Medicaid’s look back rule. As previously mentioned, this results in a period of Medicaid ineligibility as a penalty.

What is Medicaid qualifying trust?

Medicaid qualifying trusts are trusts established before 1993 that generally cause the beneficiary to be ineligible for Medicaid.

What happens if you don't follow state rules for a special needs trust?

Failure to follow state rules will disqualify the trust and disqualify the beneficiary from Medicaid .

Can Medicaid beneficiaries transfer assets to a special needs trust?

First-Party Special Needs Trusts. If a Medicaid applicant or beneficiary has resources (assets) in excess of the allowable limit, the applicant/beneficiary can transfer those excess resources to a special needs trust. Since this is a special purpose trust established by federal law, the applicant is not penalized for transferring assets ...

Can a third party special needs trust be established?

While the state is the primary beneficiary of a first-party special needs trust, any beneficiary can be established with a third-party special needs trust, and the state has no right of reimbursement from this trust after the Medicaid beneficiary's death. For more information on third-party trusts, see Nolo's section on special needs trusts.

Can you put Medicaid income in a special needs trust?

Only resources can be placed in a special needs trust. A Medicaid beneficiary's income can be placed only in an income trust for Medicaid qualification purposes (also called a Miller Trust or Qualifying Income Trust); for more information, see our article on qualified income trusts for Medicaid. (But keep in mind that once income has been received, it becomes a resource the following month. The month after receipt, the month-old income can be placed in the first-party trust.)

How often do you post a question on the Medicaid board?

At least once a week, someone will post a question on this board that basically amounts to asking how to “protect” some parental asset or amount of money and still apply for/qualify for Medicaid. Inevitably, such a poster gets jumped on by numerous people replying that trying to protect assets is “cheating” and grossly unfair to other taxpayers.

Can a family qualify for a nicer place?

The family COULD qualify financially for a “nicer” place, but Dad and Mom believe that it’s better to put the money away so that it will be there to make a difference for their kids down the line – maybe by buying a college education or by helping them to buy their own homes when the time comes.