Medicaid Look-Back Period

The Medicaid Look-Back Period is a specified timeframe during which Medicaid reviews an applicant’s financial transactions to determine eligibility for long-term care benefits. This period typically spans five years prior to the date of application for Medicaid benefits.

During the Medicaid Look-Back Period, any assets or income transferred for less than fair market value may result in penalties or delays in receiving benefits. This means that if an individual sold, gifted, or otherwise disposed of property or assets without receiving adequate compensation during this period, Medicaid may impose a penalty period during which the individual is ineligible for benefits.

For example, if a person transfers their home to a child for no payment, and this transfer occurred within the Look-Back Period, Medicaid might calculate a penalty period based on the value of the home. The penalty period would result in a delay in accessing Medicaid benefits, as the individual would be deemed to have resources that exceed Medicaid’s eligibility limits.

It’s essential for applicants to understand the implications of the Medicaid Look-Back Period when planning their finances and estate, especially in states like Texas, where specific rules and regulations may apply. Engaging in proactive estate planning, including proper asset management, can help individuals navigate the complexities of Medicaid eligibility and avoid potential penalties related to the Look-Back Period.