what is the medicaid maintenance needs allowance in connecticut

What Is the Medicaid Monthly Maintenance Needs Allowance in Connecticut? www.preserveyourestate.net 1

WHAT IS THE MEDICAID MONTHLY MAINTENANCE

NEEDS ALLOWANCE IN CONNECTICUT?

“Medicaid will pay for help with your activities of daily

living. In fact, it pays for most of the long-term care that

seniors are receiving.”

BARRY D.HOROWITZ Connecticut Estate Planning Attorney

http://www.preserveyourestate.net/

What Is the Medicaid Monthly Maintenance Needs Allowance in Connecticut? www.preserveyourestate.net 2

Before we explain the Medicaid Monthly Maintenance Needs Allowance, we

should first look at the importance of Medicaid coverage for seniors who

were never poor.

LONG-TERM CARE

According to the United States Department of Health and Human Services,

seven out of every 10 people who are turning 65 on this day will need help

with their activities of daily living eventually. Many of them will reside in

nursing homes or assisted living communities.

What Is the Medicaid Monthly Maintenance Needs Allowancein Connecticut?www.preserveyourestate.net 3

We practice law in the state of Connecticut. Genworth Financial has been

doing a great job of tracking the state of long-term care costs around the

country, and they drill down state-by-state, and even city by city.

In Connecticut, the median annual cost for a private room in a nursing

home is $158,775. Our office is in Hartford, and costs in our area are

slightly higher. In the greater Hartford area, the median charge for a

private room is $160,600 per year.

A few years ago a government study was conducted, and it found that the

average length of stay for nursing home residents was around two years and

three months. Approximately 10 percent of people in nursing homes

require care for at least five years.


These figures are attention-getting to say the least, but things will probably

get worse before they get better. According to the Genworth Financial

study, in the greater Hartford area, nursing home costs will rise by three

percent each year over the next five years.

MEDICAID TO THE RESCUE

As you can see, paying for long-term care out-of-pocket could be

devastating financially. You may assume that Medicare will pick up the tab,

but in fact, Medicare does not pay for living assistance.

Medicaid will pay for help with your

activities of daily living. In fact, it pays for

most of the long-term care that seniors are

receiving.

The $2000 limit is certainly attention-

getting, but fortunately, some things that

you own are not countable. The biggest

asset that is not counted is your home, but

in Connecticut, there is an equity limit that

stands at


RIGHTS OF THE HEALTHY SPOUSE

InSince Medicaid is a need-based program, there is a $2000 limit on

countable assets for an individual. However, if you are married and you are

applying for Medicaid, your spouse would be entitled to certain protections.

One of them is the

Medicaid Monthly

Maintenance Needs

Allowance. Ordinarily,

most of your income

would go toward the

cost of your care, but

things are different if

your spouse is relying

on the income. Your

spouse would be

entitled to a Monthly Maintenance Needs Allowance, so he or she could

continue to draw from the income.

In the state of Connecticut in 2015, the maximum allowance was

$2,980.50, and the minimum was $1,991.25.

We should also point out the fact that the healthy spouse is entitled to a

Community Spouse Resource Allowance. This is equal to half of the couple's

shared assets that are considered to be countable for Medicaid purposes,

but there is a limit.


In 2015, the maximum Community Spouse Resource Allowance in the state

of Connecticut was $119,220, and the minimum was $23,844.

There is also a protection when it comes to the family home. The healthy

spouse can remain in the home that is owned by the couple, and there is no

equity limit.

SUMMARY

The Medicaid program is relevant to many seniors who were qualified for

Medicare coverage, because Medicaid will pay for long-term care. Medicare

does not pay for living assistance, and most seniors will need help with

their activities of daily living at some point in time.

Though there is an asset limit of just $2000 for an individual applicant,

there are protections for a healthy spouse when his or her partner applies

for Medicaid coverage to pay for long-term care.

An effective Medicaid planning strategy will often involve a certain degree

of spending down. Yes, a healthy spouse can keep a certain store of assets,

but there can be additional countable assets. Plus, there are Medicaid

applicants who are not married.

To spend down assets so that you can qualify for Medicaid, you could give

gifts to family members. This takes careful planning, because the gift giving

must be completed at least five years before you submit your application if

you want to obtain coverage in a timely manner.


There is a lot to digest when you are looking into the Medicaid program. If

you have questions, schedule a consultation with a licensed elder law

attorney.

REFERENCES

United States Department of Health and Human Services http://longtermcare.gov/ Genworth Financial https://www.genworth.com/corporate/about-genworth/industry-expertise/cost-of-care.html

http://longtermcare.gov/

https://www.genworth.com/corporate/about-genworth/industry-expertise/cost-of-care.html

https://www.genworth.com/corporate/about-genworth/industry-expertise/cost-of-care.html


About the Author

Barry D. Horowitz

Barry D. Horowitz is a founding partner in the law firm of

Nirenstein, Horowitz & Associates, P.C. He received his

diploma from the Loomis Chaffee School and his Bachelor

of Arts from Bennington College, where he dual majored

in philosophy and music.

Mr. Horowitz was awarded his Juris Doctor degree with

honors from the University of Connecticut School of Law.

While attending law school, Mr. Horowitz received the

American Jurisprudence Award in Legal Ethics and the

Nathan Burkan Award.

After graduation from law school, Mr. Horowitz continued his legal education at New

York University School of Law where he received a Post Doctorate Law Degree in

Taxation. He has also recently received a national achievement award.

Mr. Horowitz is admitted to practice before all the state courts in the State of

Connecticut and the United States District Court. He is a member of the Hartford

County Bar Association, a charter member of the American Academy of Estate Planning

Attorneys, and has recently received the American Academy Award. Mr. Horowitz is

also an active member of the Connecticut Bar Association where he is a member of the

Elder Law Section, the Estate Planning and Probate Section, and the Professional Ethics

Committee. Mr. Horowitz practices exclusively in the area of Estate Planning where he

has earned a reputation as a dynamic and entertaining speaker. He also has recently

published a book entitled “Guiding Those Left Behind in Connecticut.”

Nirenstein, Horowitz & Associates, PC Living Trust and Estate Planning Attorneys Serving the State of Connecticut with Offices in Greater Hartford, Fairfield County, CT www.PreserveYourEstate.net HARTFORD WESTPORT Gothic Park 191 Post Road West 43 Woodland St., Suite 520 Westport, CT 06880 Hartford, CT 06105 Phone: 203-221-2617 Phone: (860) 548-1000

http://www.preserveyourestate.net/