MYTHS AND REALITIES OF MEDICAID PLANNING
By Carolyn E. Hartle, Esquire, Dec 7 2017 08:29PM
MYTH: TO QUALIFY FOR MEDICAID TO PAY FOR THE NURSING HOME, THE INDIVIDUAL WILL HAVE TO SELL HIS HOME.
Reality: This is false. In Pennsylvania, the residence is an exempt asset, which means it does not count as a resource for purposes of becoming eligible for Medicaid—provided the individual states he/she intends to return to his/her residence, whether he/she will ever actually be able to return to his/her home.
However, if a Medicaid recipient passes away and his/her house passes under his/her Last Will and Testament, then the Department of Human Services will have the right to recover the amount of money, which has been spent on the Medicaid recipient’s care from his/her Estate. In essence, Medicaid will make a claim against the Decedent’s Estate. This is known as Estate Recovery.