Giving Gifts Can Affect New York Medicaid Eligibility
For many older people in Westchester County, it can be a source of joy to gift their loved ones assets or cash, particularly if it can improve the lives of the recipients. However, if the older person is in a position where they may need to apply for Medicaid to pay for nursing home care, it is important to be aware that giving gifts can actually cause problems in that application. Consulting an attorney can help you ensure that your eligibility for Medicaid is preserved.
Must Meet Asset Limits Fairly
Contrary to popular belief, Medicare does not generally pay for nursing home care, but Medicaid does. However, Medicaid is means-tested, meaning that people who have more assets or ready cash than the specified limit will not qualify – the rationale is that if people have their own assets, they do not need Medicaid to pay for care. In 2025, New York’s income limit for someone seeking long-term care coverage is $1,800 per month, and they may only retain assets of $32,396.
A person or couple who has more than that in terms of assets must plan their estate appropriately, either placing assets in trusts or otherwise ensuring they are not counted for Medicaid purposes, or ‘spending down’ remaining income. However, it is not uncommon for people to appear to ‘spend down’ their estate by giving gifts to family members that can be returned to them later. This pattern has led to the implementation of what Medicaid calls the ‘look-back’ period.
Medicaid Will “Look Back”
Every U.S. state has a different ‘look-back’ period, though the average period of time is 60 months (5 years). New York’s is also 60 months for those applying for institutional (nursing home) care, and what this means is that during that period, every asset transfer made by an applicant will be scrutinized by Medicaid. Since Medicaid is granted based on the value of a person’s estate, and asset transfers generally lower that value, the Centers for Medicare & Medicaid Services (CMS) wants to be certain the asset transfers are legitimate.
What this all means is that if a person transferred an asset – for example, a mother giving a piece of fine jewelry to her daughter – in the 60 months prior to applying for Medicaid, this may be seen as a ‘non-compliant’ transfer. ‘Non-compliant’ transfers generally lead to periods of ineligibility for Medicaid, meaning that for that month or longer period, Medicaid will not cover care – but a person’s benefits will not completely be revoked.
Contact A Pleasantville Medicaid Eligibility Attorney
If you are in a position where you are looking to apply for Medicaid for institutional care, consulting a Pleasantville Medicaid eligibility attorney from Meyer & Spencer, PC can help to answer any questions you may have about the process. It is still possible to give gifts to some, but your care comes first. Contact our office today at (914) 741-2288 to schedule a consultation.
