Maine Elder Law Updates
July 1, 2009
Department of Health and Human Services Passes Rule to Encourage Purchase of Long Term Care Insurance
Effective July 1, 2009, the Maine Department of Health and Human Services has passed regulations that implement the Long Term Care Partnership Program, the purpose of which is to provide incentives for the purchase of long term care insurance. Under the program, an applicant for MaineCare benefits for long term care costs will be entitled to protect additional assets in an amount equal to the long term care insurance benefits paid under a qualifying policy, and can protect these assets over and above those routinely exempted under the MaineCare. To qualify, the policy must meet various requirements, including approval by the Bureau of Insurance, and the applicant must meet other eligibility requirements for MaineCare.
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June 9, 2009
MaineCare No Longer Penalizing Transfers for Assisted Living Applications
In April 2009, the Department of Health and Human Services (DHHS), which administers the MaineCare program, made a major policy change that affects new applications for individuals in assisted living facilities. Since 2002, DHHS has reviewed applications for MaineCare coverage for assisted living using the same transfer penalties that are imposed on applications for nursing home coverage. If an applicant had given away assets within the three years prior to the application (which time period has been extended to 5 years), then the applicant would be ineligible for MaineCare for a period of time because of the uncompensated transfer of assets.
Based on litigation brought by this office, DHHS in April decided that it would no longer penalize asset transfers for applicants seeking MaineCare for assisted living. What this means is that if such applicants have transferred assets within the lookback period, they can nonetheless be eligible for MaineCare coverage of their assisted living expenses. Importantly, however, if those same applicants progress to needing nursing home level of care, the transfer that was ignored for purposes of eligibility for MaineCare for assisted living will be ineligible for MaineCare coverage of their nursing home expenses.
If you or a loved one are currently in the process of seeking MaineCare eligibility for assisted living care, and have been denied benefits because of a transfer of assets, we strongly urge you to seek legal counsel to advise you on the best course of action given this change in DHHS policy. Further, given the significance of this change, and the complexity of determining whether to transfer assets in order to become eligible for MaineCare for assisted living care in the future, it is crucial to obtain sound legal advice before determining how this policy change may affect you.
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A client alert cannot cover all of the many changes to the MaineCare rules that may affect your particular situation, but we strongly encourage our own clients and others that may be affected by these substantial changes to seek advice on how to continue to meet their estate and long term care planning goals in light of the significant changes to the MaineCare eligibility rules.
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The Law Office of Patricia A. Nelson-Reade has extensive experience in advising clients on estate tax planning, and can assist in determining a plan that best meets the individual needs of its clients and their families. Please contact us at 207-828-1597 if you would like to set up an appointment to review how the changes in Maine law may affect your estate planning needs.