Get Ready To Pay $60,000 Per Annum For Relative's Long Term Care.

[DeminPennswoods]

72. It does, but certain income is exempt

There's a formula for what kind of savings and income "count" for medicaid purposes. For ex, money in an IRA or other pension account doesn't count. Then, iirc, you have to spend 1/2 of the remaining savings (spend down) before medicaid will start paying. Medicaid can also come after the estate for reimbursement if money wasn't counted that should have been.

Medicaid has a "look back" period at finances of the person for whom its paying the bill. It used to be 3 years, but was increased to 5 years. So anything put into a trust within that time period of the patient's death can be scrutinized and possibly persued to reimburse Medicaid. That was done to keep people from cheating the system by moving $s within a short timeframe of the person's death. If the person lives beyond 5 years of the trust establishment, everything is ok afaik.

FWIW, I was told by an elderlaw attorney that nursing homes make money with medicaid and anything over and above that reimbursement is gravy.