Some nursing homes are reaping profits at the same time that many are cutting back on care workers . . .Read more
Senate Committee Approves Bill With No Medicaid Transfer Changes
- October 26th, 2005
On a party-line vote, the Senate Finance Committee has approved a fiscal year 2006 budget reconciliation package that does not include proposed drastic changes in Medicaid asset transfer rules. But a similar bill being considered by the House Energy and Commerce Committee includes those changes and more.
The transfer-of-asset proposals, which many elder law attorneys view as harmful to their clients, were among the recommendations of the Medicaid Commission, established to advise Congress on how to cut $10 billion from Medicaid, as called for in the 2006 budget reconciliation bill approved earlier this year.
The commission proposed a severe tightening of penalties for the elderly who transfer assets and then apply for Medicaid coverage of nursing home care. The proposed rules would extend the "lookback" period for all transfers from three to five years and change the start of the penalty period for transferred assets from the date of transfer to the date of Medicaid application.
At last report, these proposals were still in the House committee's Medicaid bill, which is being finalized. Also under the House bill, seniors who have equity in their homes of $500,000 or more would be ineligible for Medicaid. The House Republican leadership has pledged to cut $15 million more from mandatory programs than the budget agreement specified. The budget resolution agreement also requires $70 billion in tax cuts.
The President of the National Academy of Elder Law Attorneys, Lawrence E. Davidow, is calling on elder law attorneys and their clients to urge Congress not to change nursing home transfer-of-asset rules. For details, click here.
The Finance Committee's bill won the backing of all 11 Republican members and was opposed by the nine Democratic members. The bill, which is expected to quickly move to a full Senate vote, does attempt to close a number of "loopholes" in Medicaid transfer rules, changes that taken together would save Medicaid an estimated $335 million over five years. The changes include how life estates and annuities may be treated by Medicaid authorities.
To read the Finance Committee Chairman's Mark of the bill, go to: http://finance.senate.gov/sitepages/legislation.htm
For an article on the stark differences between the House and Senate approaches to the budget legislation, go to http://www.kaisernetwork.org/daily_reports/rep_index.cfm?hint=3&DR_ID=33300
Local Elder Law Attorneys in Ashburn, VA
Ron M. Landsman, P.A.
Ron M. Landsman has been practicing elder law since 1983, before it was known as elder law, originally with Landsman and Laster, Washington, D.C., then Landsman, Eakes and Laster, also in Arlington, VA, and since 1990 in his own practice in Montgomery County, Maryland. He has been among the most active members of the...
Needham Mitnick & Pollack, PLC
Judith Mtinick is well known for acting as a guardian, conservator, trustee or agent on behalf of clients or by court appointment. This experience gives her a wide perspective and extensive practical knowledge that she uses when advising clients in drafting their planning documents. Her experience, as a court appointed...