With DRA, there were significant concerns regarding the Medicaid transfer penalty. Immediately, we focused on exempt transfers and in particular, transfers made for full consideration.
In a recent case in our office, we had a senior ("Mom") seeking Medicaid nursing home care. Mom's daughter had paid for her mother's home repairs and furnishings, medical equipment and medical supplies prior to entering the nursing home. The daughter had used credit cards to pay for these expenses and she had outstanding bills. Mom made payments to the credit card companies over a period of time in excess of one year for the expenses incurred by the daughter.
With the Medicaid application, we provided DSS with a full explanation of the circumstances involving these payments and the benefits to Mom. With this explanation, we also included an affidavit from her daughter.
DSS accepted the position that 1) payment to the credit card companies were reimbursement and not uncompensated transfers; and 2) despite diligent efforts, receipts for all payments made on behalf of applicant could not be obtained.
Upon a thorough explanation to DSS, direct payment by Mom to the daughter's creditors (the credit card companies) was determined not to be uncompensated transfers and hence, not subject to a Medicaid transfer penalty period. Medicaid approved!
Kudos to Team Russo - our attorneys, Kim Christian, Deanna Eble and Margherita Racanelli for their fine effort on behalf of our client.
