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Update on Hawaii MEDQuest (Medicaid) for 2009

It has been over two years (February 8, 2006) since the President signed the new Medicaid laws (Deficit Reduction Act of 2005 DRA), and the State of Hawaii has not adopted these rules. However, we understand that the Hawaii Administrative Rules have been drafted and the new Medicaid laws will be implemented once the Department of Human Services has a public hearing on these rules.

We will keep you apprised in this newsletter when Hawaii implements the DRA.

For a married couples financial qualification, there are increases in the amount of countable assets and the amount of monthly maintenance needs allowance for an at-home spouse when the other spouse qualifies medically for nursing home Medicaid.  

As of January 1, 2009, the amount of countable assets that an at-home spouse can keep was increased from $104,400 to $109,560.  

The countable asset limit for a spouse who is in a nursing home continues to be $2,000. This limit is the same for a  single individual.

The monthly personal needs allowance for an individual on nursing home Medicaid remains at $50.

As of January 1, 2009, the monthly maintenance needs allowance for a community spouse was increased from $2,610 to $2,739. When the at-home spouses own income is less than this amount, the at-home spouse is allowed to keep enough of the nursing home spouses income to have income up to $2,739. Certain deductions and adjustments apply.

Exempt assets include the personal residence, automobiles, burial plots, bona fide burial plans, wedding and engagement rings, and life insurance with no cash value. Please note that this list is neither complete in detail nor comprehensive. Also, under certain circumstances, the exempt equity on the personal residence will be limited when the State of Hawaii adopts rules and procedures in conformity with the DRA. The equity limit for residences to be adopted in Hawaii is likely to be $750,000.

The look back period for all transfers of assets is five years under the DRA. The look back period for transfers to individuals was three years under prior law. Even though Hawaii has not implemented the DRA, we expect that all transfers on or after February 8, 2006 will be subject to the new five-year look back period.

Any transfers made within the five-year period prior to applying for nursing home Medicaid will most likely result in a penalty period and a delay in getting nursing home Medicaid benefits.

If you are interested in a more detailed description about exempt and countable assets, and income for the at-home spouse, request a copy of our brochure Qualifying for Financial Assistance for Long-term Care in Hawaii. Please call our office at 531-5391 extension 356, or refer to information at our website, www.hawaiielderlaw.com.

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