Medicaid asset transfers

In 2004, Medicaid spent about $93 billion for long-term care. To qualify for Medicaid assistance, individuals' assets must be below certain levels. Those who pay for long-term care on their own may deplete their assets and become eligible for Medicaid. Some may transfer assets to qualify for Medicaid. The Government Accountability Office (GAO) released a report today on this subject, reviewing (1) level of assets held and tranferred by the elderly, (2) asset transfers that may result in penalties, (3) how states determine financial eligibility, and (4) guidance provided to states by the Centers for Medicare & Medicaid Services on asset transfers.

Hawaii was one of nine states selected for detailed review of Medicaid eligibility determination practices. The other states were Arkansas, District of Columbia, Florida, Montana, Ohio, Oregon, South Carolina, and Wisconsin.

MEDICAID: Transfers of Assets by Elderly Individuals to Obtain Long-Term Care Coverage
      Full Report (PDF, 804KB, 52p.)
      Highlights (PDF, 72KB, 1p.)
      Abstract (HTML)
      All from GAO