A mistake on “The Deficit Reduction Act of 2005" which was purportedly signed into law by President George W. Bush on February 8, 2006, could mean that it is not technically a law. But, congressional Republicans said that they have no plans to try to fix the problem, even though a fellow NAELA (National Academy of Elder Law Attorneys) member, Jim Zeigler, has filed a lawsuit charging the $39 billion deficit-cutting legislation Bush signed is unconstitutional because the House and Senate failed to pass identical versions. House GOP leaders insist there’s no problem.
The bill, which Bush signed February 8, tightens rules for Medicaid nursing home eligibility to make it more difficult for those who have transferred their assets to their families or to charities to qualify for Medicaid.
Zeigler, who advises the elderly on eligibility for nursing home care under the Medicaid program for the poor and disabled, filed suit Monday in federal court in Mobile, Ala., naming Attorney General Alberto Gonzales as a defendant. Justice Department spokesman Charles Miller declined comment on the case.
House Democrats, accusing GOP leaders of abusing the legislative process, have asked for another vote. On the last vote February 1, the bill passed by the narrowest of margins, 216-214.
The White House and House and Senate GOP leaders say the matter is settled because the mistake was technical and that top House and Senate leaders certified the bill before transmitting it to the White House.
We urge you to seek the counsel of Davidow, Davidow, Siegel & Stern immediately as we alert you to this new law and its consequences. There is also a possibility that a window of opportunity may exist to plan under the old law before New York implements the new law. We will continue to remain dedicated to preserving the rights and the dignity of senior citizens and those with special needs. We urge you to plan now.
Thursday, February 16, 2006
Monday, February 6, 2006
New Law Passed!
On Wednesday, the U.S. House of Representatives passed the Deficit Reduction Act of 2005 (S. 1932) by a vote of 216 to 214. The Senate has already passed the bill by a vote of 51 to 50, with the Vice President breaking the tie. The bill will now be sent to the President for signature.
This is a sad day for older Americans and individuals with disabilities facing long-term care crises. It is a sad day for many of our clients who will face confusing and unfair Medicaid eligibility rules. Transfers made after the date of the President’s signature (or New York State implementation) will be subject to the new law. Importantly, transfers made prior to this new law will not be effected and any advice we gave you on those transfers still holds true.
The new law extends the “look back period” to five (5) years for all transfers (to trusts or otherwise) and starts the Medicaid penalty period from the first day of the month after which you enter a nursing home and apply for Medicaid rather than the first day of the month after which you actually made a transfer. The biggest criticism of this new law is that when you apply for Medicaid, you will have no assets and no ability to pay for your care.
We urge you to seek our counsel immediately as we alert you to this new law and its consequences. There is also a possibility that a window of opportunity may exist to plan under the old law before New York implements the new law. We will continue to remain dedicated to preserving the rights and the dignity of senior citizens and those with special needs. We urge you to plan now.
This is a sad day for older Americans and individuals with disabilities facing long-term care crises. It is a sad day for many of our clients who will face confusing and unfair Medicaid eligibility rules. Transfers made after the date of the President’s signature (or New York State implementation) will be subject to the new law. Importantly, transfers made prior to this new law will not be effected and any advice we gave you on those transfers still holds true.
The new law extends the “look back period” to five (5) years for all transfers (to trusts or otherwise) and starts the Medicaid penalty period from the first day of the month after which you enter a nursing home and apply for Medicaid rather than the first day of the month after which you actually made a transfer. The biggest criticism of this new law is that when you apply for Medicaid, you will have no assets and no ability to pay for your care.
We urge you to seek our counsel immediately as we alert you to this new law and its consequences. There is also a possibility that a window of opportunity may exist to plan under the old law before New York implements the new law. We will continue to remain dedicated to preserving the rights and the dignity of senior citizens and those with special needs. We urge you to plan now.
Thursday, January 19, 2006
Medicaid Alert: Time is Running Out!
Dear Clients and Friends,
A new law is pending that will dramatically alter the “look-back” and “transfer of assets” provisions of the Medicaid law. If you still have assets in your name that you want to protect from a nursing home and Medicaid, it is crucial that you understand this new law and act IMMEDIATELY.
This new law will likely be effective around the beginning of February, 2006, upon the President’s signature, but could be delayed awaiting New York State implementation. This new law is contained in the Deficit Reduction Act of 2005 (“DRA) which passed the House of Representatives (“House”) and the Senate late last year, but with certain technical corrections requiring the House to pass it again (which they are expected to do on February 1, 2006). Transfers made after the date of the President’s signature (or New York State implementation) will be subject to the new law. Importantly, transfers made prior to this new law will not be effected and any advice we gave you on those transfers still holds true.
The new law extends the “look back period” to five (5) years for all transfers (to trusts or otherwise) and starts the Medicaid penalty period from the first day of the month after which you enter a nursing home and apply for Medicaid rather than the first day of the month after which you actually made a transfer.
Example of the new law: On December 31st, 2006 you transferred $30,000 to your granddaughter to help her pay for a semester of college. For Medicaid purposes you will have incurred a 3 month penalty beginning on the first month after you enter a nursing home and apply for Medicaid, if such date should occur within 5 years of the transfer. Here, if you applied for Medicaid on June 1, 2007, you still would not be eligible for 3 more months.
The biggest criticism of this new law is that when you apply for Medicaid you will have no assets and no ability to pay for your care. This law is unfair to any one who gives money to a family member to purchase a home, or an education, or to anyone who gives money to their charity of choice. Will seniors stop making these types of gifts to their family members? Will nursing homes accept you if you have no money and no Medicaid? The law is hurtful to our society and you should make your feelings known to your representatives.
This letter shall serve to alert you to this new law and encourage you to seek our counsel IMMEDIATELY. Furthermore, there is also a possibility that a window of opportunity now exists to plan under the old law before New York implements the new law. We will continue to remain dedicated to preserving the rights and the dignity of senior citizens and those with special needs. We urge you to plan now before time runs out!
Also, please log on to our website, www.Davidowlaw.com, and sign up for our weekly newsletter to obtain other information and updates on this new law as it unfolds. I am,
Very truly yours,
Lawrence Eric Davidow, Managing Partner
A new law is pending that will dramatically alter the “look-back” and “transfer of assets” provisions of the Medicaid law. If you still have assets in your name that you want to protect from a nursing home and Medicaid, it is crucial that you understand this new law and act IMMEDIATELY.
This new law will likely be effective around the beginning of February, 2006, upon the President’s signature, but could be delayed awaiting New York State implementation. This new law is contained in the Deficit Reduction Act of 2005 (“DRA) which passed the House of Representatives (“House”) and the Senate late last year, but with certain technical corrections requiring the House to pass it again (which they are expected to do on February 1, 2006). Transfers made after the date of the President’s signature (or New York State implementation) will be subject to the new law. Importantly, transfers made prior to this new law will not be effected and any advice we gave you on those transfers still holds true.
The new law extends the “look back period” to five (5) years for all transfers (to trusts or otherwise) and starts the Medicaid penalty period from the first day of the month after which you enter a nursing home and apply for Medicaid rather than the first day of the month after which you actually made a transfer.
Example of the new law: On December 31st, 2006 you transferred $30,000 to your granddaughter to help her pay for a semester of college. For Medicaid purposes you will have incurred a 3 month penalty beginning on the first month after you enter a nursing home and apply for Medicaid, if such date should occur within 5 years of the transfer. Here, if you applied for Medicaid on June 1, 2007, you still would not be eligible for 3 more months.
The biggest criticism of this new law is that when you apply for Medicaid you will have no assets and no ability to pay for your care. This law is unfair to any one who gives money to a family member to purchase a home, or an education, or to anyone who gives money to their charity of choice. Will seniors stop making these types of gifts to their family members? Will nursing homes accept you if you have no money and no Medicaid? The law is hurtful to our society and you should make your feelings known to your representatives.
This letter shall serve to alert you to this new law and encourage you to seek our counsel IMMEDIATELY. Furthermore, there is also a possibility that a window of opportunity now exists to plan under the old law before New York implements the new law. We will continue to remain dedicated to preserving the rights and the dignity of senior citizens and those with special needs. We urge you to plan now before time runs out!
Also, please log on to our website, www.Davidowlaw.com, and sign up for our weekly newsletter to obtain other information and updates on this new law as it unfolds. I am,
Very truly yours,
Lawrence Eric Davidow, Managing Partner
Thursday, January 12, 2006
Medicaid Management: 2006 Figures
The Centers for Medicare & Medicaid Services (CMS) has informed the Department that due to an increase in the consumer price index, the federal maximum community spouse resource allowance (CSRA) increases to $99,540 effective January 1, 2006. The State's minimum CSRA will remain unchanged at $74,820. Therefore, in determining the community spouse resource allowance on and after January 1, 2006, the community spouse is permitted to retain resources in an amount equal to the greater of the following amounts:
1. $74,820 (the State minimum community spouse resource allowance); or
2. the amount of the spousal share up to $99,540 (the new federal maximum).
In addition, effective January 1, 2006, the community spouse minimum monthly maintenance needs allowance (MMMNA) increases to $2,489 ($2,488.50 rounded up). The increased MMMNA, family member allowance, federal maximum CSRA, and State minimum CSRA must be used when completing an assessment of a couple's resources and income.
NOTE: For home care, the monthly Medicaid income level for one-person ($692) and two-person ($900) household will also take effect on January 1, 2006.
Any increases in the MMMNA and family member allowance and/or changes in the NAMI of the institutionalized spouse are to be made effective January 1, 2006.
1. $74,820 (the State minimum community spouse resource allowance); or
2. the amount of the spousal share up to $99,540 (the new federal maximum).
In addition, effective January 1, 2006, the community spouse minimum monthly maintenance needs allowance (MMMNA) increases to $2,489 ($2,488.50 rounded up). The increased MMMNA, family member allowance, federal maximum CSRA, and State minimum CSRA must be used when completing an assessment of a couple's resources and income.
NOTE: For home care, the monthly Medicaid income level for one-person ($692) and two-person ($900) household will also take effect on January 1, 2006.
Any increases in the MMMNA and family member allowance and/or changes in the NAMI of the institutionalized spouse are to be made effective January 1, 2006.
Tuesday, December 20, 2005
AARP Letter to the U.S. Senate
The following is a letter drafted by AARP in response to a report that the House approved the revision of asset transfer rules, making it much more difficult to obtain Medicaid. We urge you to copy this letter, sign and send it off in an attempt to ask the Senate to oppose this proposal.
December 19, 2005
The Honorable Bill Frist
Majority Leader
U.S. Senate
Washington, D.C. 20510
Dear Majority Leader Frist:
AARP strongly opposes the budget reconciliation conference agreement
scheduled to come before the Senate for a vote today. Rather than reflecting the
rational provisions of the Senate reconciliation bill, the final conference
agreement is irresponsible policy.
The final conference agreement does not ask for shared sacrifice to achieve
budgetary savings. Rather it protects the pharmaceutical industry, the managed
care industry, and other providers at the expense of low-income Medicaid
beneficiaries and Medicare beneficiaries who will foot the bill.
AARP members and your other constituents will question why members of the
Senate would vote for a bill that would:
• Make it harder for Americans needing long-term care to qualify for
Medicaid;
• Force some Americans to forfeit their homes in order to pay for long-term
care services;
• Require all Medicare Part B beneficiaries to pay higher premiums;
• Reopen the MMA, not to make improvements in the new drug benefit, but
to require those with more income to pay higher Part B premiums sooner;
and
• Force low-income Medicaid recipients to pay more for their care – and if
they cannot afford to do so – to potentially be denied care entirely.
The conference agreement systematically undermines the critical protections
built into both the Medicaid and Medicare programs. If the conference
agreement becomes law, then over the course of the next few weeks and months
we will make sure that our members across the country fully understand the
impact of this conference agreement on them and on their families.
Page 2
We urge the Senate to oppose the reconciliation conference package and urge
Congress to instead return to the fair and responsible policies of the original
Senate package.
Sincerely,
William D. Novelli
Cc: All members of U.S. Senate
Spousal Medicaid Rules: The 2006 Community Spouse Resource Allowance has been raised to $99,540. More figures will be reported as they are released. a
December 19, 2005
The Honorable Bill Frist
Majority Leader
U.S. Senate
Washington, D.C. 20510
Dear Majority Leader Frist:
AARP strongly opposes the budget reconciliation conference agreement
scheduled to come before the Senate for a vote today. Rather than reflecting the
rational provisions of the Senate reconciliation bill, the final conference
agreement is irresponsible policy.
The final conference agreement does not ask for shared sacrifice to achieve
budgetary savings. Rather it protects the pharmaceutical industry, the managed
care industry, and other providers at the expense of low-income Medicaid
beneficiaries and Medicare beneficiaries who will foot the bill.
AARP members and your other constituents will question why members of the
Senate would vote for a bill that would:
• Make it harder for Americans needing long-term care to qualify for
Medicaid;
• Force some Americans to forfeit their homes in order to pay for long-term
care services;
• Require all Medicare Part B beneficiaries to pay higher premiums;
• Reopen the MMA, not to make improvements in the new drug benefit, but
to require those with more income to pay higher Part B premiums sooner;
and
• Force low-income Medicaid recipients to pay more for their care – and if
they cannot afford to do so – to potentially be denied care entirely.
The conference agreement systematically undermines the critical protections
built into both the Medicaid and Medicare programs. If the conference
agreement becomes law, then over the course of the next few weeks and months
we will make sure that our members across the country fully understand the
impact of this conference agreement on them and on their families.
Page 2
We urge the Senate to oppose the reconciliation conference package and urge
Congress to instead return to the fair and responsible policies of the original
Senate package.
Sincerely,
William D. Novelli
Cc: All members of U.S. Senate
Spousal Medicaid Rules: The 2006 Community Spouse Resource Allowance has been raised to $99,540. More figures will be reported as they are released. a
Thursday, December 8, 2005
Trusts for Disabled Children: How to Choose which trust is right for your child's future
You already know you have to plan your estate carefully to provide the best quality of life for your child. But did you know there are several types of trusts to care for special needs children? The most common types are Support Trusts and Special Needs Trusts.
Support Trusts
A Support Trust mandates that the trustee make distributions for the child's support of such basics as food, shelter, clothing, medical care, and educational services. Beneficiaries of Support Trusts are ineligible to receive financial assistance through Supplemental Security Income (SSI) or Medicaid . Therefore, if your child will require SSI or Medicaid, you should avoid a Support Trust.
Special Needs Trusts
For many parents with a special needs child, the use of a Special Needs Trust is the most effective way to help the child. It manages resources while maintaining the child's eligibility for public assistance benefits. There are two types of Special Needs Trusts: Third-Party and Self-Settled.
Third-Party Special Needs Trust – Created using the parent's assets as part of an estate plan – distributed either by will or living trust.
Self-Settled Special Needs Trust – Generally created by a parent, grandparent or legal guardian using the child's assets to fund the trust – when the child receives a settlement from a personal injury lawsuit and will require lifelong care. If any assets remain in the trust after the beneficiary's death, a payback to the state is required.
Either type of Special Needs Trust helps provide a desirable quality of life for the disabled child while maintaining public assistance benefits.
Resource: www.specialneedsalliance.com
Lawrence Eric Davidow is a founding member and the Treasurer of this premier alliance of leading law firms throughout the country who are dedicated to the area of planning for those with Special Needs.
Support Trusts
A Support Trust mandates that the trustee make distributions for the child's support of such basics as food, shelter, clothing, medical care, and educational services. Beneficiaries of Support Trusts are ineligible to receive financial assistance through Supplemental Security Income (SSI) or Medicaid . Therefore, if your child will require SSI or Medicaid, you should avoid a Support Trust.
Special Needs Trusts
For many parents with a special needs child, the use of a Special Needs Trust is the most effective way to help the child. It manages resources while maintaining the child's eligibility for public assistance benefits. There are two types of Special Needs Trusts: Third-Party and Self-Settled.
Third-Party Special Needs Trust – Created using the parent's assets as part of an estate plan – distributed either by will or living trust.
Self-Settled Special Needs Trust – Generally created by a parent, grandparent or legal guardian using the child's assets to fund the trust – when the child receives a settlement from a personal injury lawsuit and will require lifelong care. If any assets remain in the trust after the beneficiary's death, a payback to the state is required.
Either type of Special Needs Trust helps provide a desirable quality of life for the disabled child while maintaining public assistance benefits.
Resource: www.specialneedsalliance.com
Lawrence Eric Davidow is a founding member and the Treasurer of this premier alliance of leading law firms throughout the country who are dedicated to the area of planning for those with Special Needs.
Monday, November 21, 2005
2006 Medicare Premiums, Deductibles, and Co-Pays Announced
The U.S. Centers for Medicare and Medicaid Services has announced the 2006 Medicare deductibles, premiums, and co-pay amounts. The following was published in the Federal Register:
Medicare Hospital Insurance (Part A):
Deductible - $952 per Benefit Period ($912 in 2005)
Co-insurance - $238 a day for the 61st through the 90th day ($228 in 2005), per Benefit Period; $476 a day for each “nonrenewable, lifetime reserve day” ($456 in 2005)
Skilled Nursing Facility Co-insurance - $119 a day for the 21st through the 100th day per Benefit Period ($114 in 2005)
Hospital Insurance Premium - $393 ($375 in 2005)
Reduced Hospital Insurance Premium - $216 ($206 in 2005)
Medicare Medical Insurance (Part B):
Deductible - $124 per year ($110 in 2005)
Monthly Premium - $88.50 ($78.20 in 2005)
For more details, log on to http://www.access.gpo.gov/su_docs/fedreg/a050923c.html
and scroll down to Centers for Medicare & Medicaid Services.
Medicare Hospital Insurance (Part A):
Deductible - $952 per Benefit Period ($912 in 2005)
Co-insurance - $238 a day for the 61st through the 90th day ($228 in 2005), per Benefit Period; $476 a day for each “nonrenewable, lifetime reserve day” ($456 in 2005)
Skilled Nursing Facility Co-insurance - $119 a day for the 21st through the 100th day per Benefit Period ($114 in 2005)
Hospital Insurance Premium - $393 ($375 in 2005)
Reduced Hospital Insurance Premium - $216 ($206 in 2005)
Medicare Medical Insurance (Part B):
Deductible - $124 per year ($110 in 2005)
Monthly Premium - $88.50 ($78.20 in 2005)
For more details, log on to http://www.access.gpo.gov/su_docs/fedreg/a050923c.html
and scroll down to Centers for Medicare & Medicaid Services.
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