The Consequences of Paying Every Day Expenses with Cash: How One Couple was Penalized Under NJ Medicaid

Posted in NJ Medicaid

By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold, NJ Medicaid Attorney
Here’s a disturbing case I recently read about. A 70+ year old couple, consistent with their established pattern, had approximately $42,000 of cash withdrawals during the five year lookback period for which they did not have receipts. The wife needed long term care and applied for nursing home Medicaid. Her county board of social services (the processor of all Medicaid applications in the county of applicant residence) imposed a penalty for the full $42,000.
Of course, the couple has a hard time understanding how paying for their customary living expenses can be considered transferring assets for the purpose of becoming Medicaid Eligible. Are there any effective suggestions on what to do?
One commentator suggested using commonly accepted statistical studies and publications including government reports, for example. There is a United States Department of …
Go to Source