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Forum Newbie
Group: Forum Members
Last Login: 9/10/2008 11:17:30 PM
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| My Mom is 60 yrs old, had a stroke and is in the hospital. She has NOTHING with the exception of her 401K which is over 10K in value. To be eligible for medicaid it has to be spent down, but here's what I want to do: I want to find a facility, apply for medicaid and have it be retroactive to cover the costs of the facility. In the meantime, can I use the 401k for her therapy costs? I figure once the medicaid kicks in the 401K will have already been spent. But can medicaid be denied because she had those assets in the first place even though they will be gone? Please help. I want to do the best thing with the money in terms of my mother's care but don't want ramifications later that would put her in jeopardy.
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Forum Member
Group: Forum Members
Last Login: 6/23/2008 1:27:21 PM
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| Some states exclude IRA & 401K accounts in Medicaid eligibility and some states DO NOT. It sounds like you have already determined your state will not exclude your mom's 401K. My state, Kentucky, excludes IRA & 401K accounts; however, I still run into situations in some counties where a caseworker incorrectly tells clients IRA & 401K accounts are countable and must be spent down. So, if there is any doubt about IRA & 401K accounts in your state you may wish to double check. Assuming your state does, in fact, count your mom's 401K account, then it must be spent down before she can obtain Medicaid but exactly how it is spent shouldn't matter to the Medicaid agency as long as your mom gets fair market value in goods and/or services and doesn't simply give the money away. Yes, it can be spent on therapy. With regard to your question "But can Medicaid be denied because she had those assets in the first place even though they will be gone?" Medicaid can be denied because she HAS assets that make her ineligible. However, once her assets are spent down and she no longer has assets that put her over the limit she may be eligible and whatever she had previously is not an issue. Most Medicaid recipients had assets at one time that put them over the limit and they were not Medicaid eligible during the time they had assets above the limit. Assuming the 401K must be spent and assuming that is the only hinderance to your mom obtaining Medicaid, the sooner her money is spent the sooner she may be Medicaid eligible. I hope this info helps. Joe Whitehouse, Louisville, Ky.
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