If one applies for Medicaid to pay for long term care in a nursing home, the state will look to see if the applicant made any gifts in the five years preceding the Medicaid application. If so, then (with some exceptions that I will address in a later article) a period of Medicaid ineligibility will be imposed.
For many years, the period of ineligibility was determined by dividing the amount of the gift by $6,800, which amount was supposed to be the average monthly cost of care in a nursing home. That divisor has been updated.
Effective this date, July 1, 2014, the divisor to determine the number of months of Medicaid ineligibility for gift transfers is $7,940. UPDATE: This divisor was again updated effective July 1, 2016.
The Maryland Medicaid authorities publish this information as Schedule MA-6, a copy of which you may download to your computer by clicking here: Schedule MA-6 Average Nursing Home Costs
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