MEDICAID SPECIAL ALERT

Radical Changes to Medicaid Laws Put Squeeze on Seniors

By Dana E. Bookbinder. Esquire

The Deficit Reduction Act of 2005 barely squeaked through the Senate this morning by a 51-50 vote, yet the devastating impact on the lower to middle class elderly population will be keenly felt.  With Vice President Dick Cheney casting the deciding vote, many who wish to plan ahead to preserve their savings from long term care expenses for the benefit of their spouses and children are shut out of certain strategies because they did not act soon enough. 

           The new Act works to deny Medicaid eligibility to any individual who has transferred assets within five years of applying for benefits.  Individuals will also be disqualified if a spouse has transferred assets within the five-year period.  Once the President signs the Act, which is expected within the next several days, it will become effective.  Any transfers completed prior to the effective date of the Act will be grandfathered under the old law, which has a three-year lookback period for most transfers and which permits many transfers within the three year period.  

Because, as of this writing, the old law is still in effect, Begley & Bookbinder, P.C. URGES all of its clients to immediately implement all of the asset protection recommendations the firm has made.   Clients who are slow to act on their lawyers’ advice may find that opportunities lost can be very expensive.  Because of the anticipated nature of the changes in the law, the firm sent notices to its asset protection clients several weeks ago warning that procrastination would be costly.

 Now more than ever, seniors and others who cannot easily afford the cost of long term care must be proactive in protecting their savings.  Those who are interested in learning more about asset protection planning as well as our current clients with questions are urged to contact our office immediately.   Even those who have already entered a nursing facility can still benefit from legal planning.

 While the precise fallout from the legislation remains to be seen, the firm is working diligently to protect its clients.  Stay tuned for additional firm literature and seminars to be announced.

  Begley & Bookbinder, P.C. is a law firm that specializes in Elder & Disabilities Law.  We are based in Moorestown, NJ, with offices in Stone Harbor & Lawrenceville.

 Begley & Bookbinder, P.C. is a law firm that specializes in Elder & Disabilities Law.
 We are based in Moorestown, NJ, with offices in Stone Harbor & Lawrenceville.