DRA REGULATIONS TO BE ISSUED SHORTLY

Last month we reported that there is a lawsuit attempting to halt changes in Medicaid included in the Deficit Reduction Act of 2005 (including increasing look-back period to five years for transfers of assets). In the absence of court action thus far, the Office of Medicaid is proceeding with implementation. At a legislative briefing, representatives of the Office of Medicaid recently reported on plans to issue regulations implementing the Deficit Reduction Act shortly. As reported by Deborah Thomson of the Pass Group, lobbyist for the Massachusetts Chapter of the National Academy of Elder Law Attorneys, the Office of Medicaid expects the regulations to include the following elements:

• The new rules will apply to all applications filed on or after the date the regulations are issued.
• However, they will apply to any transfers made on or after February 8, 2006.
• They will include a 30-day bed hold payment to nursing homes when a resident is appealing a transfer penalty period.
• The new regulations will incorporate a $750,000 limit on home equity, the maximum allowed under the DRA.

05/06