One source of confusion about Medicaid (and there are many) is how retirement accounts are treated. When the DSS caseworker assigned to your Medicaid application reviews your financial information, is he/she going to treat your retirement accounts as "avaliable" assets and therefore subject to the spend-down process?
In a word, absolutely.
Yes, retirement accounts are treated as "protected" assets in some legal situations. Unfortunately, Medicaid law is not one of them.
And yes, the State fully understands that if you do liquidate qualified retirement accounts you may trigger all kinds of penalties and income tax liability, but the State doesn't care. Even at a reduced value, it's still a resource to spend on your care, thereby delaying the point where the State has to step in and help out.
Sorry to share such bleak information with you on a Friday, but you need accurate information when you're filing for Medicaid!
I wonder what the geriatric legions would have to say about this.
Posted by: Geri | October 02, 2011 at 08:16 AM
Great post, looking to gather some info to help a relative out. Thanks for the tips.
Posted by: Bill | November 18, 2011 at 12:16 PM
No offense, but if there's a facebook like button, it'll be much easier for me to share.
Posted by: elliptical reviews | November 30, 2011 at 02:00 AM
When the DSS caseworker designated to your State health programs application opinions your financial information, is he/she going to cure your pension records as "avaliable" resources and therefore topic to the spend-down process?
Posted by: Seattle Retirement Homes | December 08, 2011 at 03:22 AM
Medicaid plays an important role to people who have low income, but there are facts that they should be aware of before filing for it. Actually, if a person is retired, they can file their Medicaid status as an asset. This is information that should be disseminated to everyone.
Posted by: Zachary Shepherd | January 12, 2012 at 02:39 PM
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Posted by: Senior Planning NJ | January 17, 2012 at 10:30 PM
I always thought retirement accounts wer always exempt. If not, scary indeed.
Posted by: Connecticut Car Rates | January 23, 2012 at 02:08 PM