Arizona Medicaid Long Term Care Eligibility
Arizona Medicaid Long Term Care
Arizona is an income cap state, meaning that in order to be eligible for Medicaid long term care benefits there is a hard income limit. Non income cap states allow applicants to spend down money for their care, whereas income cap states require the amount to be no higher than their limit at time of application.
Arizona’s Medicaid Program provides payment for special long-term care support services, as well as full Medicaid health coverage, to eligible people who, because of their medical conditions, require assistance with activities of daily living (eating, bathing, dressing, grooming, transferring, etc.). Long-term care supports may be provided either in a facility or in an individual’s home (generally up to 40 hours).
1. Residency and Citizenship – the applicant must be a resident of Arizona and a U.S. citizen or have proper immigration status.
2. Age/Disability – the applicant must be age 65 or older, or blind, or disabled. The applicant must meet certain medical requirements consistent with the level of care requested.
3. Income Limitations – If single, the applicant’s income (wages, Social Security benefits, pensions, veteran’s benefits, annuities, SSI payments, IRAs, etc.) must be no higher than $2,205/month to become eligible for Medicaid. Income that is not considered countable includes a personal needs allowance ($110.00/month per individual). Persons with income in excess of $2,205 can still qualify for Medicaid coverage if excess income is placed into a Miller Trust. The trust must be irrevocable and Arizona Medicaid must be the designated recipient when the beneficiary dies. Only income in excess of $2,205 must be placed in the trust.
4. Asset Limitations (Exempt vs. Available) – Medicaid divides assets into two categories: Exempt and Available. Exempt assets are specifically designated under the rules, and ownership of an exempt asset by the applicant will not result in a denial of benefits. If an asset is not listed as exempt then it needs to be liquidated and applied toward the costs of nursing home care before the applicant can receive Medicaid benefits. The state has a look back period of 5 years with a penalty for people who sell assets below fair market price, transfer assets to others, or give money and property away. Basically, all money and property, and any item that can be valued and turned into cash, is a countable asset unless it is listed as exempt.
Exempt Assets for an applicant in Arizona include:
i. $2,000 or less in cash/non-exempt assets if single. If the assets exceed the limit on the first of the month the applicant is ineligible for the entire month.
ii. One home is exempt (equity limit $560,000) if planning to return, a spouse, a child under 21, or a disabled person resides in it. Whenever an institutionalized person sells a previously exempted residence, the money from the sale becomes a countable asset. The recipient may then lose eligibility for Medicaid until he/she has spent down the money and their countable resources are once again less than the maximum.
iii. One automobile, no equity amount specified.
iv. Burial spaces/plots and irrevocable burial funds, with a value of $1,500 or less.
v. Non-saleable property, household furnishings, furniture, clothing, jewelry, and other personal effects are not counted.
vi. Value of life insurance if face value is $1,500 or less.
Amount of assets community spouse may retain: The community spouse can keep non-exempt resources owned by one or both spouses with a maximum of $120,900. If the community spouse’s assets do not equal the minimum of $24,180, the community spouse is able to retain assets from the institutionalized spouse until the minimum is reached.
Community spouse impoverishment protection: The community spouse can keep part of the institutionalized spouse’s income if the community spouse has a monthly income of less than $2,003. The maximum amount of income that can be retained is $3,023/month varying by case, depending on unique living expenses.
Arizona long term care insurance partnership:
This is a program between the state and private insurance companies. Partnership policies protect assets by matching dollar for dollar what policy holders pay into their policies. For example, if you bought a Partnership Policy with a maximum benefit payout of $155,000 then you are able to protect $155,000 of your assets. For married couples each spouse needs to purchase their own policy. Once the $155,000 worth of long term care coverage is used, you may apply for Medicaid with $155,000 worth of assets exempted.
Free guide to long term care planning: https://www.altcs.com
Medicaid guide to Arizona: http://www.medicaid.gov/Medicaid-CHIP-Program-Information/By-State/arizona.html