Update on Hawaii Medicaid Systems for 2008
As of July 1, 2007, the monthly personal needs allowance for an individual on nursing home Medicaid increased from $30 to $50.
For a married couple’s financial qualification, there are increases in the amount of countable assets and the amount of monthly maintenance needs allowance for an at-home spouse when the other spouse qualifies medically for nursing home Medicaid.
As of January 1, 2008, the amount of countable assets that an at-home spouse can keep was increased from $101,640 to $104,400.
The countable asset limit for a spouse who is in a nursing home continues to be $2000. This limit is the same for a single individual.
Exempt assets include the personal residence, automobiles, burial plots, bona fide burial plans, wedding and engagement rings, and life insurance with no cash value. Please note that this list is neither complete in detail nor comprehensive. Also, under certain circumstances, the exempt equity on the personal residence will be limited when the State of Hawaii adopts rules and procedures in conformity with the Deficit Reduction Act of 2005 (DRA). This Federal law was enacted February 8, 2006, but the State of Hawaii has not implemented the DRA in the Medicaid program. The equity limit for residences to be adopted in Hawaii is likely to be $750,000.
As of January 1, 2008 the monthly maintenance needs allowance for a community spouse was increased from $2,541 to $2,610. When the at-home spouse’s own income is less than this amount, the at-home spouse is allowed to keep enough of the nursing home spouse’s income to have income up to $2,610. Certain deductions and adjustments apply.
The look back period for all transfers of assets is five years under the DRA. The look back period for transfers to individuals was three years under prior law. Even though Hawaii has not implemented the DRA, we expect that all transfers on or after February 8, 2006 will be subject to the new five-year look back period.
Any transfers made within the five-year period prior to applying for nursing home Medicaid will most likely result in a penalty period and a delay in getting nursing home Medicaid benefits.
We will keep you apprised in this newsletter when Hawaii implements the DRA.
If you are interested in a more detailed description about exempt and countable
assets, and income for the at-home spouse, request a copy of our brochure
“Qualifying for Financial Assistance for Long Term Care in Hawaii.”
Please call Allen at 531-5391 extension 356.
Legal Disclaimer
This information has been provided for informational purposes only. It does not constitute legal advice. The receipt of this information does not establish an attorney-client privilege. Proper legal advice can only be given upon consideration of all the relevant facts and laws. Therefore you should not act upon any of the information contained herein without seeking appropriate legal counsel.
Attorneys Judith Sterling and Michelle Tucker are both CPAs and licensed attorneys. They are the first two attorneys in Hawaii to be certified by the American Bar Association (ABA) accredited Estate Law Specialist Board, Inc., as Estate Planning Law Specialists, and are so certified by the Supreme Court of Hawaii. The Supreme Court of Hawaii grants Hawaii certification only to lawyers in good standing who have successfully completed a specialty program accredited by the ABA.
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