105 yo mother $1200 check / Medicaid eligibility
Hi Terry
Thank you for taking my call on the radio today.
My 105 year old mother is in a nursing hone received her $1200 stimulus payment. We were told this needs to be spent in 12 months or she will lose Medicaid eligibility. Is this true? And if so, is there any restrictions on what the money can be spent on? For example gifted to grandchildren?
Thank you!
Terry Says
You stumped me on the show! But during the next commercial break, I researched your question. I knew that this stimulus could not be “taken” by the nursing home, for sure. And it is not considered ‘income” to her for tax purposes. BUT, and here’s what I had to look up, there is a limit on ASSETS for nursing home residents whose care is paid by the state Medicaid program.
That asset limit is $2,000. So if the money is not spent down within 12 months, it can be taken by the state for her care. She (you) if you have her power of attorney or your name is on her checking account, can spend it at your discretion. Click here for a clear explanation of what’s allowed in terms of assets to qualify for Medicaid programs.
And finally, there’s one more thing that worries me. I was unable to figure out WHEN they “count” her assets! Could it be at yearend?? I have no idea — but the simplest thing would be to spend down to the $2,000 maximum as soon as possible! I know you care about her — and if you transfer the money to your own account you will spend it on her behalf if necessary.
