Important Changes in Connecticut Legislation
Regarding Medicaid Eligibility
Recent law changes in the State of Connecticut could cause your heirs to be indebted to the State if you receive Medicaid benefits. On July 6, 2005, the governor signed into law Amendment 8230, to House Bill 7000, which provides that any gift “resulting in the imposition of a penalty period shall be presumed to be made with the intent to obtain eligibility for medical assistance. This shall create a debt that shall be due by the transferor or transferee to the Department of Social Services in an amount equal to the amount of the medical assistance provided.”
For example: A parent makes a gift or transfer to their children of $50,000 and receives Medicaid benefits within sixty (60) months after the gift was made. The parent or the child is now liable to the State for $50,000 or the amount of Medicaid/Title 19 benefits paid up to the $50,000 transfer.
Any gift made after July 6, 2005 would be subject to this new law. However, at this time, it is unclear how the State will enforce this law. What we do know is that the regulations are tightening. There is a great deal of uncertainty in the Elder Law community, but the sense is that it is only going to get worse. If your clients have assets, and they want to remain in control of those assets, long-term care insurance may be the right solution.
Prudent and careful planning is well advised.