Home | MAPP Video | Case Studies | Testimonials | About Us

Frequently Asked Questions about
Medicaid, MAPP and Protecting Assets:

Click on any questions below to find the answers...


What can I learn by buying the MAPP™ Video Package?

Didn't the new Deficit Reduction Act (DRA) Medicaid laws passed by Congress in 2006 make it imposible to protect assets from Medicaid?

What types of benefits will Medicaid provide?

If my loved one is on Medicaid, won't they get substandard care?

Several years ago, my father bought an annuity, which the financial representative said would be protected from Medicaid. Now, Medicaid is saying that is not the case and that he will have to spend it all on care before he can qualify for benfits. What's the truth?

Is this legal?

Is this going to get me in trouble with the IRS?

Who gets the saved assets?

How secure is the money?

What is the impact on Social Security?

How long will it take to become eligible for Medicaid?

Is it a permanent solution?

Once in a nursing home, doesn't Medicaid require you to 'spend down' all your money on care before you can qualify for Medicaid benefits?

Isn't it against the rules to give away your assets for the purpose of becoming qualified for Medicaid?

Don't you have to be broke to get on Medicaid?

How come everybody else, including my attorney, says I can't give anything away?

Can't I find out from the Medicaid office how to protect assets?

My mother gave me $25,000 last year. Isn't she disqualified from Medicaid for five years?

If there was a way to protect assets from Medicaid, wouldn't my attorney tell me about it (which he has not)?

My father is in a nursing home. I am interested in protecting as much of his money as possible for his grandchildren. What choices do I have?

My family has put me in charge of my mother's money, as she is in an Alzheimer's unit. Is there anything I can do where I would not lose control of her finances?

My mother lives with me and I'm still able to take care of her, but it's obvious that her mind is deteriorating quickly. Is it too early to get started on a plan, or should I wait until she is in a care facility?



What can I learn by buying the MAPP™ Video Package?



Didn't the new Deficit Reduction Act (DRA) Medicaid laws passed by Congress in 2006 make it impossible to protect assets from Medicaid?

Not at all. The rules are certainly different, but it just means that there has to be some adjustments in the Medicaid asset protection strategies we employ. Some strategies that were useful in the past may no longer be effective. On the other hand, new rules mean new opportunities and new strategies, which is what you will find in the MAPP Video Package. - Return to top


Several years ago, my father bought an annuity, which the financial representative said would be protected from Medicaid. Now, Medicaid is saying that is not the case and that he will have to spend it all on care before he can qualify for benfits. What's the truth?

Deferred annuities (lump-sum version with a cash-in value) do not now, nor have they in the past, provided protection from Mediciad. Prior to the Deficit Reduction Act, annuitized or immediate annuities (contracts that had been irrevocably converted into a guaranteed income stream) where sometimes used with single Medicaid patients, as, in many states, the heirs could receive any remaing payments upon the death of the patient. The DRA, however, requires that, in most cases, Medicaid be named as the first beneficiary for any remaining payments. Therefore, except under very specific circumstances (discussed in detail in the MAPP Video), the conversion of the patient's estate into an annuity can be not only a completley ineffective planning technique, but even a very destructive one. - Return to top


What types of benefits will Medicaid provide?

That depends on the state. In all states Medicaid (called Medi-Cal in California) provides benefits for nursing home care, which typically includes room and board, care, prescriptions, supplies and medical coverage. In most states, other types of care, often referred to as 'community based care', such as assisted living facilities, residential care facilities, adult foster care facilities, home care and adult day care, may also be covered. Some states cover all these types of care, some cover one or two, and others only nursing home Medicaid. You may want to verify the specific types of care provided in your state. - Return to top


If my loved one is on Medicaid, won't they get substandard care?

The quality of care is more a function of the specific facility, rather than the pay status of the patient. The truth of the matter is that the majority of long term care patients are already on Medicaid. Sure, there are some 'high class' facilities that cater specifically to those clients for whom cost is not a consideration. However, most facilities will generally have a mixture of Medicaid and private pay patients. For the most part, the actual caregivers have no idea, nor do they care, which is which. Besides, every facility must abide by both state and Federal standards of care. It is against the law to provide substandard care. In addition, every state has an Ombudsman program available to patients and their families to investigate such problems. And, regardless of whether the patient is private pay or on Medicaid, the more involved the family, the better the care of the patient. - Return to top


Is this legal?

Absolutely! What we are doing is teaching you how to use the Federal and state Medicaid eligibility rules exactly as they are written. You'll be learning how to use the rules to your advantage, not trying to get around them. - Return to top


Is this going to get me in trouble with the IRS?

Medicaid qualification has nothing to do with the IRS. If you're talking about taxes, of course you'll need to abide by any applicable state or Federal tax rules. But remember, gifts of assets do not normally result in Federal gift tax until the total of non-exempt gifts exceeds one million dollars (current limit). As far as Feceral income tax is concerned, a gift is not normally considered income for tax purposes. - Return to top


Who gets the saved assets?

The assets can be transferred to any person (or persons) the patient desires, although the children or other family members are usually the ones chosen. From Medicaid's point of view, though, it does not matter who gets the assets. - Return to top


How secure is the money?

The money is as secure as you want to make it. Since the money is typically transferred to family members, it's their decision as to where the money is placed, or to what use it is put. Although we do recommend that the transferred money be maintained, intact, until after the death of the patient, that is a personal decision on the part of the family. - Return to top


What is the impact on Social Security?

There is no impact on Social Security benefits. Social Security is something the patient has earned. Taking steps to protect assets from Medicaid does not affect someone's Social Security payment. - Return to top


How long will it take to become eligible for Medicaid?

That depends entirely on the particular situation, including such variables as income, expenses, value of assets, etc., as well as the particular state in which the patient resides. What we teach you, though, is how to use the Medicaid eligibility rules to get a patient financially qualified as quickly as possible, while protecting as much of the patient's assets as possible. - Return to top


Is it a permanent solution?

Once a patient is financially qualified for long-term care Medicaid, unless they were to acquire additional assets (for example, an inheritance) they would normally remain financially qualified for the rest of their lives. - Return to top


Once in a nursing home, doesn't Medicaid require you to 'spend down' all your money on care before you can qualify for Medicaid benefits?

That's what Medicaid would like you to believe. You have to be technically broke before you can qualify for Medicaid, but Medicaid does not require that you spend your money on anything in particular, including care. - Return to top


Isn't it against the rules to give away your assets for the purpose of becoming qualified for Medicaid?

No. What is a violation of Medicaid eligibility rules is to dispose of assets, for whatever reason, and then not disclose that fact at the time of Medicaid application. What we teach you is the optimum structure and timing of Medicaid asset protection strategies and techniques designed to maximize the portion of a patient's assets that can be protected. And, since everything is legal and "above board", and you can share with the Medicaid worker the details of everything you have done. There is absolutely no need to hide anything. - Return to top


Don't you have to be broke to get on Medicaid?

That's true! But the real question is: "How did you get there?" We can show you how to get there while protecting tens or even hundreds of thousands of dollars for your family, charity, etc. - Return to top


How come everybody else, including my attorney, says I can't give anything away?

Because 'everybody else' is not intimately familiar with the Medicaid eligibility rules, has not spent years studying every detail of the Medicaid eligibility rules, nor has 'everybody else' worked for the last 12 years helping thousands of families apply exactly these strategies, designed specifically for single long term care patients. - Return to top


Can't I find out from the Medicaid office how to protect assets?

Do you really think that Medicaid is interested in helping you learn how to protect assets while qualifying for Medicaid? Besides, Medicaid workers are not trained, nor are they allowed, to give financial or legal advice. - Return to top


My mother gave me $25,000 last year. Isn't she disqualified from Medicaid for five years?

No! That's one of the common misconceptions. The look back period is not the same thing as the penalty period. - Return to top


If there was a way to protect assets from Medicaid, wouldn't my attorney tell me about it (which he has not)?

Most attorneys know little or nothing about Medicaid qualification in general, or Medicaid asset protection in particular. And, of those that do, very few have the knowledge or experience to put together an aggressive plan to maximize the protection of assets while preparing a patient for Medicaid qualification. But that is exactly what we have been doing since 1995. With our experience and knowledge, we can show you, and your attorney, exactly what you need to know. - Return to top


My father is in a nursing home. I am interested in protecting as much of his money as possible for his grandchildren. What choices do I have?

Basically, there are two. You can keep paying his bills and hope he dies before his money runs out (what a choice!), OR, you can let us teach you the techniques and strategies that will allow you to implement a plan to protect a large portion of his remaining estate for his grandchildren, while eventually allowing him to qualify for Medicaid. - Return to top


My family has put me in charge of my mother's money, as she is in an Alzheimer's unit. Is there anything I can do where I would not lose control of her finances?

That's the point. Right now you are in charge, just like the captain of the Titanic was in charge - until it went under - or, in your case, until the money is gone. What you're going to learn is how to permanently protect the money so that you can retain that control, no matter how long she lives. - Return to top


My mother lives with me and I'm still able to take care of her, but it's obvious that her mind is deteriorating quickly. Is it too early to get started on a plan, or should I wait until she is in a care facility?

Don't wait! The sooner you understand what you can do and, equally important, what you can't do, the better the opportunity you will have to protect her assets from Medicaid. - Return to top

Home | MAPP Video | Case Studies | Testimonials | About Us

Medicaid Eligibility | Medicaid Asset Protection | Medicaid Qualification

© The Financial Aid Center for Long Term Care.
All Rights Reserved.
www.medicaidhelp.com