Limits on Applicant's Income and Assets
In order to qualify for institutional Medicaid (where the applicant resides in a nursing home or assisted living facility), an applicant must meet certain criteria for income and assets as set forth under New Jersey’s administrative regulations.
The 2008 income cap for an individual applying for Medicaid is $1,869.00 per month. If an applicant exceeds that income level, but requires institutional care, the applicant will still qualify for Medicaid under New Jersey’s "medical needy" program.
During the Medicaid process, local officials look at the applicant and his or her spouse’s assets. A single person residing in a nursing home must have less than $2,000 in resources. For couples where both parties are in a nursing home, the total resources can not exceed $3,000. If one spouse is in a nursing home and the other spouse resides in the community, the resources can not exceed a total of $104,400.00, as a maximum and $20,880 as a minimum. The community spouse can only retain one half of the assets owed at the time the Medicaid application is made. The other one half must be spent down before the ill spouse will be qualified for medicaid.
A history of the applicant’s financial status will also be reviewed as part of the Medicaid application process. You will be requested to provide three years of financial information if you are an individual. If you have transferred assets into a trust, the look back period is five years.
If any transfer of assets are made during the look back periods, a penalty will be assessed against the applicant. That penalty may or may not effect qualification for Medicaid.For more information, contact us at info@hjslawoffice.com