The Deficit Reduction Act authorizes states to adopt it not later than the first day of the calendar quarter following the close of the next legislative session. The states will have the option to adopt the new rules retroactively to the date of the president's signature on February 8, 2006. While the law is effective upon the date of the president's signature, the implementation from a practical standpoint could take years. While planning is affected immediately, applications for Medicaid benefits are not likely to be impacted for at least 6 to 12 months depending upon the state's ability to implement these changes. It is unclear what impact this bill will have on charitable giving and on nursing homes as the burden on nursing homes to ensure they can provide documentation for the previous five years will virtually ensure denial of claims while individuals are already institutionalized thus thereby creating a lack of payment to healthcare facilities caring for these residents. The true impact of the Deficit Reduction Act of 2005 will take years to determine. The story is far from over.
Summary of Medicaid Deficit Reduction Act
The drastic changes accompanying the new law have made advanced planning all the more important in protecting assets and estates from depletion due to the costs of institutionalized nursing home care, which can exceed $10,000 per month in most states. Planning ahead of time and consulting with a qualified Medicaid Consulting expert and reviewing all options can do much to protect assets and avoid unnecessary disqualification from Medicaid benefits. If entering a nursing home is within the realm of possibility in the foreseeable future, failing to plan ahead or transferring assets without knowing the consequences of those transfers can create undue burdens and expenses for not only the elderly, but their families as well.
At Medicaid Consultants we are a team dedicated to helping people who are worried about losing their homes and other assets to increasing medical and nursing home costs, taxes, and the costs and time delays of probate. If you would like our assistance please call our offices at (877) 21-MEDICAID for more information.
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