Medicaid Spend-Down and the Five-Year Look-Back

‘Just give the house to the kids and let Medicaid pay.’ That sentence has cost Maryland families dearly.

Medicaid long-term care has strict asset limits, so families ‘spend down’ — using savings on care and allowable expenses until they qualify. But Medicaid also reviews five years of financial history: the look-back. Assets given away, or sold for less than they’re worth, during that five-year window trigger a penalty period — months of ineligibility, calculated from the amount transferred, arriving exactly when care is needed most. What families don’t know: legal planning tools exist. Spousal protections so a healthy husband or wife isn’t left impoverished. Exempt assets. Certain trusts and annuities — done correctly, and done early.

Don’t take Medicaid advice from a neighbor. An hour with an elder-law attorney — ideally years ahead, but even mid-crisis — routinely protects far more than families believed possible.

This has been Care Without Crisis Explains, presented by Vanguard Care Solutions.

For more free videos and family resources — or when you’re ready to talk about care at home — visit vanguardcaresolutions.com or call 301-327-1444.