• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Law Offices of Kobrick and Moccia

Long Island Estate Planning Attorneys

ESTATE, TRUST PLANNING &
ELDER LAW INFORMATION CENTER

Call Now: (800) 295.1917

  • Attend Our Free Webinars
  • Home
  • Our Firm
    • About Our Firm
    • Client Testimonials
    • Meet Our Team
  • Services
    • Blended Family Planning
    • Elder Law
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Pet Planning
    • SECURE Act
    • Special Needs Planning
    • Trust Administration
  • Elder Law
    • Coping With Alzheimer’s
    • Guardianship
    • Medicaid Planning
    • Nursing Home Planning
  • Resources
    • Articles
    • Elder Law Resources
      • Commack Elder Law
      • Elder Law Reports
      • Harrison Elder Law
      • Hauppauge Elder Law
      • Rockville Centre Elder Law
      • White Plains Elder Law
    • Estate Planning Definitions
    • FREE Estate Planning Worksheet
    • FREE Seminars
    • Frequently Asked Questions
      • Elder Law
      • Estate Planning
      • Families Without an Estate Plan
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid
      • Probate
      • Trust Administration
      • Trust Administration & Probate
      • Wills and Trusts
    • Is My Estate Plan Outdated?
    • Legacy Wealth Planning Consultation Form
    • Medicaid Resources
    • Probate Resources
      • Harrison Probate
      • Hauppauge Probate
      • Long Island Probate
    • Probate Checklist
    • Special Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
      • Trust Administration
    • Top Estate Planning Techniques
  • Communities We Serve
    • Nassau County
      • Garden City
      • Lynbrook
      • Malverne
      • Rockville Centre
    • Suffolk County
      • Commack
      • Dix Hills
      • Hauppauge
      • Nesconset
      • Smithtown
    • Westchester County
      • Harrison
      • Mamaroneck
      • Rye Brook
      • White Plains
  • Webinars
  • BLOG
  • Reviews
    • Our Reviews
    • Review Us
  • Contact Us
Home » Medicaid Planning » The Medicaid Look-Back Period Explained

The Medicaid Look-Back Period Explained

March 28, 2017 by Anthony Moccia

MedicaidAre you facing the need for nursing home care for yourself or a spouse in the near future? If so, are you worried about paying for the cost of that care? If you are, you are hardly alone. In 2016, the average yearly cost of long-term care (LTC) across the United States was about $80,000. In the State of New York, the average cost of care was over $120,000 a year in 2016 – and those figures are projected to continue to climb for the foreseeable future. It should come as no surprise then that over half of all seniors in a LTC facility turn to Medicaid for assistance covering the cost of their care. If you are considering applying for assistance from Medicaid, you need to have a firm understanding of the eligibility requirements first so you can know what to expect. If you failed to incorporate Medicaid planning into your estate plan prior to this point, and you have any non-exempt assets, you may find yourself facing a significant hurdle to eligibility. Moreover, transferring those assets isn’t an option thanks to the Medicaid five-year look-back period.

Why Is Qualifying for Medicaid So Important?

Unfortunately, some people find out too late that Medicaid may be their only hope of receiving help with the high cost of LTC. Although Medicare will cover basic healthcare needs, it does not cover LTC expenses unless they follow a stay in the hospital – and even then, Medicare will only cover up to 100 days of LTC costs. Don’t look to your basic health insurance coverage either as most basic healthcare policies exclude LTC expenses unless you purchased a separate LTC policy at an additional expense. It is for these reasons that so many seniors end up turning to Medicaid for help with the nursing home expenses.

The Medicaid Five-Year Look-Back Rule

Medicaid uses both an income and a “countable resources” limit when evaluating applicants because the program is intended to assist low income individuals, families, the aged and the disabled with healthcare expenses. The countable resources limit is extremely low.  The Medicaid five-year look-back rule prevents you from simply transferring those assets when you realize you need coverage. The rule allows Medicaid to review your finances for the five-year period prior to your application for benefits. Any asset transfers for less than fair market value may be discounted and the value of the asset imputed back into your estate for the purpose of determining eligibility for Medicaid benefits. If your assets exceed the program limit, a waiting period will be imposed during which time you will be expected to “spend-down” your excess assets. Basically, the “spend-down” requirement simply means you are expected to liquidate any “excess” assets and use the funds to cover your LTC expenses during the waiting period. The end result is that you could lose a significant portion of your retirement nest egg if you are forced to “spend-down” in order to qualify for Medicaid.

How Can a New York Estate Planning Attorney Help?

Ideally, Medicaid planning should be part of your estate plan long before you actually need to qualify for Medicaid. When that is the case, the five-year look-back rule does not negatively impact your estate. If, however, you find yourself in need of Medicaid benefits and you did not include Medicaid planning in your estate plan early enough, you should still consult with an experienced New York estate planning attorney because there are often last minute Medicaid planning strategies that may help protect at least some of your assets. 

Contact Us

For more information, please download our FREE estate planning worksheet. If you have questions or concerns about the Medicaid look-back rule, or about Medicaid planning strategies, contact an experienced estate planning attorney at the Law Offices of Kobrick & Moccia by calling 800-295-1917 to schedule your appointment.

  • Author
  • Recent Posts
Anthony Moccia
Anthony Moccia
Anthony Moccia is an attorney and partner at The Law Offices of Kobrick & Moccia.His practice focuses on estate planning and elder law.He is a member of the New York State and Nassau County Bar Associations.He frequently presents free seminars on wills & living trusts to area residents and his seminars are said to be “informative, entertaining & easy to understand.”
Anthony Moccia
Latest posts by Anthony Moccia (see all)
  • “Last Will and Testament” Origin - April 1, 2021
  • Do I Need a “Durable” Power of Attorney? - April 2, 2020
  • Joint Tenancy Pros and Cons - March 31, 2020

Filed Under: Medicaid Planning

Other Articles You May Find Useful

Harrison Medicaid lawyers
Will Medicaid Pay for Assisted Living Expenses?
countable asset for Medicaid
What Is Considered a Countable Asset for Medicaid?
Hauppauge Medicaid lawyer
What Is the Medicaid Transfer Penalty?
Harrison Medicaid attorneys
Protecting Your Assets from Medicaid Spend-Down
Medicaid attorneys
Medicaid Attorneys Explain When a Waiting Period May Be Imposed
Harrison Medicaid attorneys
Harrison Medicaid Attorneys Uncover Top 5 Medicaid Myths

Primary Sidebar

Law Offices of Kobrick and Moccia

Download our free estate planning worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Blog Subscription

  • This field is for validation purposes and should be left unchanged.

GARDEN CITY

1305 Franklin Avenue Suite 170
Garden City, NY 11530
United States (US)
Phone: (516) 248-9500
Fax: (516) 248-7606

HAUPPAUGE

150 Motor Parkway Suite 401 (Regus)
Hauppauge, NY 11788
United States (US)
Phone: (631) 941-3400
Fax: (516) 248-7606

HARRISON

600 Mamaroneck Avenue, 4th Floor
Harrison, NY 10528
United States (US)
Phone: (914) 701-0777
Fax: (516) 248-7606

MAP

kobrick_sidbr_map

Office Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 5:00 PM

Footer

footer-logo
  • Facebook
  • LinkedIn
  • Twitter

The information on this Attorneys & Lawyers / Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. The information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

Kobrick and Moccia, Attorneys at Law. Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

Law Offices of Kobrick and Moccia
Attorney Advertisement
© 2023 American Academy of Estate Planning Attorneys, Inc.