Medicaid and estate questions

[LoraJ]

My boyfriend's dad just got approved for Medicaid today. When we filled out the application, there was some paperwork in there stating that once he passes on, Medicaid will seize his all of his property and assets. They say it is to make up for the burden that he caused tax payers. The thing is, up until he was sick, he was a tax paying citizen. He never collected social security or anything. He paid into the system. Can't some of that count?

Not that he has much, but I just don't understand how that whole process works. My boyfriend used to live there and has a bunch of stuff there. Does someone just come in and do inventory? Do we do the inventory? He also has a huge credit card bill. What happens with that?

I'm just a wreck right now because I don't think his dad will make it through the weekend. Trying to prepare for what is to happen next because from what I read, sounds like we will be pounced on before we can even mourn.

 

[barkley]

they don't seize everything. they may put a lein on a house or against certain types of holdings. the belongings of anyone other than he (that may be in the house) are not subject to seizure, and most personal property (furniture, clothing, momentos) are exempt.

the idea behind it is that some will stucture their estates such that they have massive readily available assets that could be used for their care but they want to leave to their children. this prevents a person from using a tax payer sponsored medical program while sheltering assetts.

if a medicaid lein is instituted against a home most people are surprised to learn that the eventual "pay off" is much lower than they anticipate. the amount is what the government ACTUALY pays out for the medical services (and that is much less than what a private insurance company pays or a medical provider would charge a cash paying patient).

if he qualified for medicaid and was employed previously he needs to file a social security disablity app asap. he may qualify for both the cash benefits as well as medicare (which has no payback provision).

 

[LoraJ]

He has SS disability. That just went through this week. He was a freelance graphic artist who didn't work much last year which is why he didn't have insurance. He worked a little bit this year before he got sick. He doesn't own any property, has no assets and about $100 in the bank.

This is going to be such a nightmare. I am so glad that at least we can get the hospital bills off our back.

Thanks for the info.