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. Federal tax law now provides favorable tax treatment for qualified long-term care insurance policies and services. Unreimbursed long-term care expenses are deductible as a medical expense to the extent that total medical expenses exceed 7.5 percent of adjusted gross income. Premiums up to a specified age will also be treated as medical expenses.