There are many reasons someone can be denied access to Medicaid, from missing documentation to incorrectly filled in forms, but one of the most common issues is for having excess resources. Here is some helpful advice on what to do in this situation, from a Medicaid eligibility specialist and elder law attorney in New Jersey.
What are Excess Resources?
Part of the Medicaid application process includes listing all the assets that you own, including those of your spouse if you are married. This means bank accounts, property, savings bonds, investments and more. Some assets are exempt from this list, like your home, household goods, one vehicle per home and pension. You may also keep up to $8,000 of non-exempt assets, and your spouse can keep a certain amount of assets under the terms of the Community Spouse Resource Allowance, or CSRA.
All of your assets that are non-exempt after this are considered excess resources. If this is above a certain amount (this differs from state to state and may change from year to year depending on legislation), then you will be denied Medicaid as the state feels that you are essentially too wealthy for this type of support.
Why Were You Denied Medicaid?
There are several reasons why this denial may occur.
- An error: The agency may have made a mistake when calculating your assets, by classifying an exempt asset as non-exempt, for example. You can appeal an error of this kind within 30 days of the mailing date of your denial.
- Calculations were correct, but your excess resources are not very high: This means that you just missed qualifying for Medicaid, but that your application can be approved if you reduce your excess resources (by buying an irrevocable burial reserve or spending on nursing care), you should qualify with ease.
- You applied too far in advance: This often happens to people who apply too soon and simply have too many assets to be considered eligible, especially in circumstances where a nursing home has insisted on an application. This will require the implementation of a well-considered spend-down strategy, where the best choices are outlined to ensure that you achieve Medicaid eligibility upon reapplication at a later point. There are several legal avenues to achieve this while still utilizing your assets to the benefit of yourself and loved ones, and your elder law attorney is critical to developing a reliable strategy for you to follow.
Work with a Qualified and Experienced Elder Law Attorney in NJ to Develop Your Medicaid Strategy
Frank R. Campisano is highly experienced and compassionate elder law attorney with considerable knowledge of Medicaid issues. In addition to planning ahead financially for Medicaid eligibility, he is also able to assist with applications, appeals and other Medicaid issues. If you or a family member needs assistance with their Medicaid planning or protecting their assets effectively, don’t hesitate to get help today.
In addition, you can also prepare additional estate planning documents, such as your Last Will and Testament, Healthcare Proxy, Power of Attorney documents and trusts.