I'm happy to report on a positive development at Connecticut's Department of Social Services (DSS), which is the entity that is in charge of processing Medicaid applications and determining eligibility.
You're probably aware that there is a five-year look-back period (it was a three-year look-back until 2006) associated with Medicaid applications. In other words, DSS will essentially audit your financial records for the five-year period leading up to the filing of your Medicaid application. Up until now, that required your submission of five years worth of monthly statements for every account/asset that has (or had) your name on it. That's an awful lot of paperwork.
Well, now DSS has apparently acknowledged that IF a Medicaid applicant has gifted money out of her name with the intent of protecting it from the nursing home, that transfer has most likely taken place in the past two years. I'm not sure if this conclusion is based on hard data or if it's just a guess. But either way, I suppose the logic makes sense.
Anyway, in light of this conclusion, DSS is now going to require monthly statements for assets over the past TWO years (no longer five) and then one statement for every six-month period for the other three years of the look-back.
In other words, it's still a five-year look-back, but now they're going to take a "hard" look at the past two years and a "soft" look at the other three years. The result is much less paperwork to collect and submit.
And, presumably, applications will be processed more quickly. This may be the main driving force behind this change since most DSS caseworkers seem to be struggling with an unholy backlog of applications to review.
IMPORTANT: Please note that I'm providing this update based on a brand new memo that is being circulated through DSS regional offices. However, I do not have any first-hand experience with this new process, and I'm not aware of any elder law colleagues who have any first-hand experience with this either.
So now we just need to hope that this new approach is actually implemented. We'll see...