When were the new Medicaid laws passed? What were the changes?
On February 1st, the United States House of Representatives took the final step in passing Senate Bill 1932, the Deficit Reduction Act of 2005. On February 8th, President Bush signed the Bill into law. The new law changes Medicaid eligibility rules to make it harder for middle class people to access the Medicaid program to pay for nursing home, assisted living and other long-term care. The bill is effective as of February 8, 2006. Medicaid is the state and federal program which pays toward the cost of long-term care. With nursing homes costing $4,000.00 to $15,000.00 per month, people who saved for their retirements are often left impoverished. The new law imposes very harsh penalties for people who make gifts of their assets and who then apply for Medicaid. The law also targets the homes of some Medicaid-hopefuls and removes other planning strategies. Some of the changes: Change in “Look-Back period:” People who gift money will be disqualified from Medicaid for a longer period of time
