I was told by many to buy all kinds of (unneeded)
things with mother's money before she went on medicaid.
Big ticket items like TVs, car, whatever.
I responded that I had SAVED this money explicitly to pay
for her care and a nursing home.
Why do people not want to pay for this ???
I felt it was an incentive to get her into a home faster
and believe it worked.
Here is a quote from a retired nursing home admin. on a forum
voicing my thoughts exactly.
" I've taken care of millionaires who legally transferred assets and were eligible for Medicaid.
First, there is a legal answer to your question that is best answered by an elder attorney. The look back period is a federal regulation and is the same for all states (five years).
Second, this issue also has ethical implications. Nursing homes do not make any money on Medicaid reimbursement. This is problematic for both for profit and nonprofit facilities as both have rising operational costs and reimbursement from Medicaid is designed to not allow a profit and is retroactive in its cost adjustment (18-24 months in some states). The point here is that as more people "plan" to avoid paying the non-Medicaid or private charge for nursing home care, the fewer residents are contributing to the basic business that makes a nursing home succeed in terms of being able to offer competitive pay/benefits, more nursing staff, better activities, etc. There is a STRONG correlation between those facilities that have a majority of Medicaid residents and low star ratings on Medicare's Nursing Home Compare site. And the kicker here for me is that there are numerous responses on this website that think nursing homes are terrible places and money grabbers but the same people would scheme to hide assets and deny paying their fair share. Medicaid was established to ensure that those who truly need care are able to receive it, not to ensure that the more fortunate could have their cake and eat it too.
Third, there is an irony here as well. The fastest growing line item in almost every state budget is the Medicaid expense for long term care. This is due, in large part, to families transferring assets to avoid paying for nursing home care. Twenty years ago I was administrator in a facility that had about 60% of its residents paying privately. This facility is now averaging only 12% private pay. As the facility has had to rely on Medicaid reimbursement as its primary source of revenue, staffing has been reduced and resident satisfaction has declined, as one would expect. "