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Many of our clients in a nursing home have a spouse who is still healthy and independent with many years ahead of them. Our goal in these cases is to obtain Medicaid eligibility for the nursing home spouse on the earliest possible date and maximize the income and assets available for the healthy spouse, called the "community spouse".

When there is a community spouse, Medicaid looks at the value of the couple's countable assets on the date of nursing home admission. Certain assets are not countable, such as, the primary residence, one car, and the community spouse's IRAs. Most assets are countable including bank accounts, money markets, CDs, bonds, brokerage accounts, annuities, life insurance with cash surrender value, IRAs of the nursing home spouse and second homes. Assets are countable whether they are titled in the name of one spouse or both spouses and even if a child is also named on the account.

After determining the value of the couple's countable assets, Medicaid allows the community spouse to keep one-half, up to a maximum of $101,640. The nursing home spouse keeps $2,400 or $8,000, depending on their income. Everything else is considered "excess" and must be spent down before the nursing home spouse can receive Medicaid benefits.

So, if a couple's countable assets are $100,000 and the nursing home spouse is entitled to keep $2,400, the community spouse keeps $50,000, and $47,600 is considered "excess" and must be spent before Medicaid can start. Once the couple spends their excess assets and Medicaid begins, the nursing home spouse's income goes to the nursing home; the community spouse keeps their own income and, possibly, some portion of the nursing home spouse's income. Medicaid determines this by looking at certain of the community spouse's expenses and applying a standard formula to determine how much money they need; however, in Medicaid's view of the world, the maximum amount any needs is $2,541 per month. This is as much as Medicaid will tell you.

Here is what Medicaid will not tell you:

1. There are ways in which the couple's "countable" assets can be increased, before the date of the nursing home admission, in order to increase the one-half share of the community spouse.

2. If the community spouse needs more of the nursing home spouse's income than indicated by Medicaid's standard formula, they can ask for and be granted additional income, even an amount in excess of the $2,541 monthly maximum.

3. If the community spouse's needs are still not met by their income and their spouse's income, they may invest excess assets in order to secure additional monthly income for themselves for the rest of their life.

4. If excess assets still remain, they can be spent on things that will most benefit the community spouse, for example, burial accounts and home repairs but it does not end there; for example, income tax can be pre-paid on the nursing home spouse's IRA, which will have to be liquidated before they qualify for Medicaid.

The bottom line is that Medicaid will not tell you how to maximize the income and assets of the community spouse but we will. LET US HELP YOU!...For more information ...

Also in September's LifeLines

HEALTHLINE - Medication Safety
As we age we may be faced with more halth conditions that require medication in order to be managed. Also, as we get older, normal body changes can affect the way medicines are absorbed. Because of these circumstances, there is also a bigger risk of drug interactions for older adults including drug-drug interactions where medicines interact with each other to cause unwanted effects, drug-condition interactions where a medical condition makes certain drugs potentially harmful, and drug-food and drug-alcohol interactions which can cause adverse effects.

The more you know about your medicines and the more you talk with your health care professionals, the easier it is to avoid problems with your medicines. It is important to remember that over-the-counter medicines (OTC) and supplements can interact with other medications and your health care professional should be aware of all the medicines or supplements you are taking. Remember: ALL MEDICINES COUNT.

For much more in-depth information on this important topic including; important questions to ask about your prescriptions before leaving your doctors office and how to handle and store your medication, please visit our website at www.levandowskidarpino.com For more information ...

LEGALLINE - Report Criticizes "Free Lunch" Seminars Aimed at Seniors
During a Seniors Summit held recently at the Securities and Exchange commission, regulators released a joint report summarizing the results of their examinations of "free lunch" investment seminars. The year long examination was conducted by the SEC, the Financial Industry Regulatory Authority, and state securities regulators. They scrutinized 110 securities firms that sponsor sale seminars and offer a free lunch to entice attendees. Regarding the findings, SEC Chairman Christopher Cox said, "These findings are a wake up call for securities regulators, the financial services industry and especially older investors. Not only were virtually all of the "free lunch" seminars sales jobs in disguise, but half made misleading or exaggerated claims, and more than a third had unsuitable recommendations or outright fraud. The SEC and our fellow regulators intend to put a stop to this. We will step in wherever false claims are being made. We will sanction crooks who try to feast on the life savings of older investors. And we will work with every honest securities firm to help them to do more to ensure that their interactions with older investors fully comply with the securities laws. I applaud securities examiners whose collective work has clearly shown that there is no such thing as a "free lunch". For more on this story and a copy of the report go to http://www.sec.gov/news/press/2007/2007-179.htm.....For more information ...

CARE GIVER HELPLINE - The Caregiver as Advocate
When a loved one can no longer be taken care of at home, a nursing facility may be the next step in the "caretaking continuum." Although the actual day to day needs of your loved one will be met by others, there is still a need for you to monitor and manage the care provided to make certain your loved one is receiving the best possible care. Although facilities may try to manage the care of their residents the best way possible, problems can and do erupt. Some of these include: a) unanswered call bells, b) use of restraints, c) toileting problems, d) bed sores and other preventable infections, e) malnutrition and/or dehydration, f) sexual assault/physical abuse/emotional abuse, g) medication errors, h) lack of meaningful activity, i) inadequate or unqualified staffing, j) bed transfer issues. For more on this topic visit our website at www.levandowskidarpino.com.....For more information ...

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The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Copyright © 2009 by Levandowski & Darpino, LLC. All rights reserved. You may reproduce materials available at this time for your own personal use and for non-commercial distribution. All copies must include this copyright statement.