WHEN AND HOW TO APPLY FOR MEDICAID
Although when filing for Colorado Medicaid, it is permissible to apply for benefits for the period starting up to three months before the date of application, you cannot go back any further than that. Therefore, it makes sense to apply as soon as you are sure your family member can qualify.
Applying for Colorado Medicaid too early, however, can be an expensive mistake if gifts have been made that affect eligibility. Most gifts made by the Medicaid applicant and/or spouse can cause a period of disqualification if either or both of them apply for Medicaid within five years of the gift. Applying before this five-year “look-back period” has expired can cause a huge increase in the penalty period.
Here’s an example. Let’s assume John made a gift to his children of his house worth $250,000 on March 1, 2006. If John waits until March 1, 2011, to apply for Colorado Medicaid, there will be no period of disqualification because his gift was made outside of the five-year look-back period; however, if he applies for Colorado Medicaid on February 1, 2011 he could be disqualified from receiving Medicaid coverage for approximately 40 months!
Subject to some exceptions, the general rule is never to apply for Colorado Medicaid benefits until you’re sure your family qualifies. If gifts have been made within the last 5 years, the opinion of an experienced Colorado elder law attorney should be sought before actually applying for Medicaid to make absolutely certain that the time is right to do so.
My next blog will discuss where you go to apply for benefits.
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