The best way to avoid violating this period and receiving a penalty of Medicaid ineligibility is to consult a Medicaid planner before gifting or transferring any assets. A Medicaid planner can also offer assistance if you have violated the look-back period.

What is Medicaid look-back period?

Medicaid’s look-back period is meant to prevent Medicaid applicants from giving away assets or selling them under fair market value in an attempt to meet Medicaid’s asset limit.

Can you hide assets from Medicaid?

“Hiding” assets by not reporting them on the Medicaid application is illegal and considered fraud against the state, with both civil and criminal penalties.

When does the look back period start for Medicaid?

If one gifts or transfers assets prior to this look-back period, there is no penalization. The date of one’s Medicaid application is the date from which one’s look-back period begins.

How does Medicaid look at past financial transactions?

Medicaid only reviews applicants’ past financial information within a specific window. Each state’s Medicaid program uses slightly different eligibility rules, but most states examine all a person’s financial transactions dating back five years (60 months) from the date of their qualifying application for long-term care Medicaid benefits.

How to prepare for Medicaid look back documentation?

Given this restriction on gifting and the look back period, if there is a possibility you may need Medicaid at some point, then start planning and acting as if you WILL apply from day one. It will save you a world of trouble in the end.

What’s the difference between look back and penalty for Medicaid?

This is referred to as the Medicaid penalty period. For example, if you write a check to your adult son for $14,000 and apply for Medicaid within five years of the date on the check, then Medicaid will delay covering the cost of your nursing home care because you could have used that money to pay for it yourself.