Medicaid Coverage or Home?
Some elderly homeowners would have to sell their homes to qualify for federal nursing home assistance under a plan working its way through Congress.
A provision that could pass the House next week would block anyone owning a home valued at more than $500,000 from obtaining nursing home assistance under Medicaid.
Republican House leaders say the tighter rules - part of a package aimed at reducing fraud under Medicaid - are needed to stop wealthy seniors from draining the health insurance program for the poor.
But senior advocates predict the changes would hurt low-income seniors who cannot afford nursing-home care. More seniors now use nursing homes for temporary care, advocates said, and forced home sales could complicate a return home.
Medicaid picks up the tab for a nursing home stay only after a patient has exhausted all assets. Under current law, a home is not counted as an asset.
"A person's house has always been seen as very symbolic - the American dream," said Kirsten Sloan, a lobbyist for AARP. The national senior advocacy group is opposed to the changes.
But Rep. Nathan Deal, R-Ga., chairman of the House Energy and Commerce Subcommittee on Health, said, "If we're serious about doing something about the problems in Medicaid, this is a place .*.*. to start."
"If you tell the average taxpayer in this country that they are having to pay for the nursing home cost for a person who has a half- million dollar equity, the taxpayer would say there's something wrong."
In much of the country, only the wealthy live in half-million dollar houses. But in some markets, $500,000 does not buy luxury mansion. This is especially true along the East and West Coasts, including parts of Virginia and Florida.
In some real estate markets, the AARP's Sloan said, someone who is cash poor could have bought a house three or four decades ago that has increased greatly in value.
State legislatures and Congress are trying to cope with higher health costs in the program that provides medical care for the poor. One potential fix is to make it harder for the wealthy to shelter assets and qualify for aid.
Medicaid can deny nursing home and other benefits temporarily to those who transfer funds to family members within the last three years. One proposal would extend the benefit denial period to five years.
The stricter rule on homes would not apply to a married couple if one spouse lives in the home while the other goes into a nursing home.
Source: Sean Mussenden, Medicaid coverage or home? http://www.timesdispatch.com ( Nov. 5, 2005 )
Courtesy of AARP
Home
|