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August 28, 2008
ATTORNEY SURABIAN CELEBRATES 5TH YEAR WRITNING COLUMNS FOR SENIORS
Boy, time flies. Five years ago to the day, I wrote my first article describing how the Commonwealth had just taken away the protection of your home if you need nursing home care. Several months later, after a lot of pressure from members of the National Academy of Elder Law Attorneys, this law was overturned.
Over the past 5 years, I sometimes feel like the bearer of bad news because of how the legislature has been relentless, in making cuts against the finances of the elderly. This culminated on February 8, 2006 when President Bush signed the Deficit Reduction Act (DRA).
The DRA says that you may not make any gifts to family, friends, or charities, if you need nursing home care within 5 years of the gift. This rule was literally interpreted by the Massachusetts Medicaid Department and they would look at the past 5 years of bank statements and disqualify you for any check that appeared to be a gift, regardless of the amount. In December 2007 I wrote about a MassHealth hearing that I had regarding a grandmother who gave her granddaughter $100 for Easter and $200 for Christmas and was disqualified for MassHealth (Medicaid is called MassHealth in Massachusetts) because of these gifts. At the hearing I was able to get the $100 gift allowed, but the hearings officer said that “She should have know better” than to give $200 away because it would affect her Medicaid eligibility. When is the government going to explain this law to seniors? My experience is that very few people understand that making gifts can be problematic if they need nursing home care, even small gifts.
Now a for a change, a bit of good news about legislation passed in the 2007-2008 Massachusetts legislative session:
· H.975 Certain Seniors Exempted From Bank Fees – When someone applies for MassHealth, they need to provide copies of bank statements as well as copies of checks. Now, if you are like my Uncle Fred, he would check his bank statement and then throw it in the trash after ensuring that everything is fine. Getting copies of the statements and copies of all the checks is time consuming and expensive! This law requires banks to provide this information free of charge to seniors, if the information has been requested by MassHealth.
· Personal Needs Allowance for Nursing Home Residents – In 2008 nursing home residents were allowed to keep $72.80 out of their income for their personal needs. The House FY2009 budget cut this amount to $65. The Senate’s budget maintained the $72.80 monthly allowance. In the end, the Senate’s version won out allowing nursing home residents to keep $72.80 of their income for their personal needs.
This article gives general information and not specific advice on individual matters. Persons wanting individualized advice on matters discussed should contact an advisor experienced in those matters. To the extent this article provides information on legal matters, it is based on law in effect in Massachusetts on the date of posting (laws in effect in other states are often quite different).
Ronald H. Surabian is a CPA and attorney who works at the Elder Law Center in Saugus, Massachusetts. He also holds Masters in accounting and a Masters in tax law. He currently serves on the board of directors of the Massachusetts Chapter of the National Academy of Elder Law Attorneys. If you have any questions please call me at the Elder Law Center, One Essex Street, Saugus, MA 01906 (781)233-4444. To view this or any prior article, please visit our web site at www.elderlawcenter.org