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Frequently Asked Questions

 

Q:  What is the 3 Year Rule? If my client gives away a portion of her assets, does that mean she can't receive Medical Assistance for 3 years?

A.  It's highly unlikely that your client will not qualify for Medical Assistance for three years.  It's unfortunate, but this rule is one of the most misunderstood concepts  in Medicaid Planning.  

When an individual applies for Medical Assistance, the County Assistance Office will look at all the transfers and gifts made in the last 3 years (including those transfers at less than full value). Some gifts can result in a penalty period, but there are many exceptions to the rule. Unless it was a significant amount of money, it is unlikely that the individual will be disqualified for 3 years.  The penalty period may be much shorter or even expired. It's also important to remember that the look back period is extended to 5 years when the transfers were made to a trust. 

Q. What is the difference between a Health Care Power of Attorney and a Living Will?

A. The Health Care Power of Attorney and the Living Will are legal tools that can help ensure that you retain some measure of control over the medical treatment you will receive in the event that you ever lack the competency to make treatment decisions for yourself.

A Health Care Power of Attorney is a more flexible document. It allows you to name an agent to act on your behalf whether you are terminally ill or just incapacitated as a result of a recoverable condition like a stroke.  A living will, however, is only effective if you are terminally ill AND in a permanent vegetative state or permanent comma.   If you would like more information on this topic, visit our Powers of Attorney Page for more articles.

Q. What is the Minimum Monthly Maintenance Needs Allowance (MMMNA) for 2005?

A. If a married nursing home resident receives Medicaid benefits, his or her community spouse is entitled to retain a certain minimum level of income called the Minimum Monthly Maintenance Needs Allowance (MMMNA).  If the community spouse’s own income is insufficient to provide this income allowance, income can be diverted from the institutionalized spouse.

The MMMNA must be at least 150% of the federal poverty level for a family of two plus an excess shelter allowance. The minimum MMMNA is set by federal law and is adjusted no later than July 1^st of each year to keep up with inflation. 

As of July 1, 2005, the minimum MMMNA increased from $1,562 to $1,604 per month.  The actual MMMNA can be higher depending upon the monthly shelter related expenses incurred by the community spouse. 

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