Under the old rules, there was a look-back period of thirty months with a maximum period of ineligibility of thirty months. The period of ineligibility is determined as follows. Fifteen months later, the individual enters a nursing home and files for Medicaid. The government would look back thirty-six months, and since there was a transfer during this period, would determine a penalty period by dividing the amount of assets transferred by the monthly regional cost of nursing care in the state. It s important to remember that individual states have their own rules for Medicaid eligibility and for determining which assets are considered exempt.
Many states also have monthly income caps.
If an individual s monthly income exceeds this cap, the individual will not qualify for Medicaid. Long-Term Care Insurance. Several insurers offer private long-term care insurance. Generally, long-term care insurance is a viable choice if the policy premium does not exceed 7 percent of your income. Many improvements have been made to the coverage offered by insurance companies, and there are many policy options available in the market today.