MASSHEALTH EXPANDED ESTATE RECOVERY REPEALED, BUT LOOKBACK PERIODS MAY BE EXTENDED

Seniors trying to protect their assets from Medicaid's reach recently won a legislative victory. Lawmakers reversed a measure that expanded the state's ability to go after the estates of Medicaid patients. Under the plan the state could attach the homes of spouses of Medicaid recipients if it was jointly-owned. As a result of the legislative override of Gov. Romney’s veto, life estates and homes owned jointly between husband and wife will no longer be subject to estate recovery upon the death of a MassHealth beneficiary. It was expected to save the state about $8 million, but was not implemented before being reversed. Gov. Romney , who supported the plan, had said it was crucial for the state to recover as much taxpayer money spent though Medicaid as possible. Foes said the extended reach would harm mostly elderly spouses still living in their homes.

Another measure supported by Romney, which thus far has not been overridden, but neither has it been implemented, would expand the “look back” period in which the government can review asset transfers when determining whether a senior qualifies for Medicaid. If implemented, for general assets, the government could look back five years, up from three under the old law. The period would also be extended to 10 years, from five, for trusts. Romney has said the plan is aimed to prevent people from giving their assets away in order to qualify for free care through Medicaid. Opponents say the extended look-back periods would harm seniors who helped pay for their grown children's weddings or gave grandchildren money for college with no intention of trying to get out of their health care bills.

-Adapted from: The Boston Herald: “Medicaid reach reversed”, By Jennifer Heldt Powell, July 24, 2004 and ElderLaw News from Margolis & Associates,  August 2, 2004 

08/2004