Question 1

What is the Medicaid Five-Year Look-Back?

Accepted Answer

When someone applies for Medicaid long-term care, Medicaid reviews all financial transactions from the previous five years. Any asset transferred for less than fair market value during that period may result in a penalty period of Medicaid ineligibility.

Question 2

What is a Community Spouse in Medicaid?

Accepted Answer

The Community Spouse is the healthier of the two spouses who is not in a nursing facility and is residing at home or elsewhere.

Question 3

What are Countable Assets for Medicaid?

Accepted Answer

Countable assets are those owned by the applicant or spouse that count toward the allowed asset level for Medicaid eligibility. If owned jointly, the entire amount counts — not one half — even if owned jointly with a child or someone else.

Question 4

What is a CSRA (Community Spouse Resource Allowance)?

Accepted Answer

The Community Spouse Resource Allowance (CSRA) is the amount of countable assets the Community Spouse can keep when the other spouse applies for Medicaid nursing home benefits.

Question 5

What is a MMNA (Monthly Maintenance Needs Allowance)?

Accepted Answer

The Monthly Maintenance Needs Allowance (MMNA) is the calculated amount of income the Community Spouse needs to pay for monthly bills. If their actual income is less than this amount, some income from the nursing home spouse may be diverted to the Community Spouse.

Question 6

What is a Qualified Income Trust (QIT / Miller Trust)?

Accepted Answer

A Qualified Income Trust, also known as a Miller Trust, is an irrevocable trust used to help individuals qualify for Medicaid long-term care benefits when their income exceeds the state income cap. Only the applicant's income may be deposited, and the state Medicaid agency must be named as the remainder beneficiary.

Question 7

What is Patient Liability for Medicaid?

Accepted Answer

Patient Liability is the amount of income each month that is due and payable to the nursing home. Each month that goes by, that obligation exists. Guidance by an experienced elder law attorney is strongly urged.

Question 8

What is an Irrevocable Burial Reserve (IBR)?

Accepted Answer

An Irrevocable Burial Reserve (IBR) or Irrevocable Burial Fund (IBF) is a fund used to pay for the burial and funeral of the Medicaid applicant. It must be irrevocable and in a special account, or typically a prepaid funeral life insurance policy purchased from the funeral home.

Resources

MIAM

Long-Term Care Options

Medicaid