Will a $9,000 Gift Delay Dad's Qualifying for Medicaid?

An elder law attorney told me that a $9,000 gift from my father made in 2008 would have to be paid back. His assets will run out soon and so I want to apply for Medicaid on his behalf.  Would the gift of $9,000, which falls within the look-back period, disqualify him from receiving Medicaid for roughly two months?

Yes. All gifts made during the five years prior to an application for Medicaid must be reported. Such gifts will cause a period of ineligibility based on the state's calculation of the average cost of nursing home care. If your state has determined that the average cost is $4,500 a month, then a transfer of $9,000 would cause two months of ineligibility, which does not begin until your father's other assets have been spent down. You can reverse the penalty by returning the money, or you can pay for the nursing home privately for those two months.