PODCASTEpisode 15 – The Five-Year Lookback Period: What You Need to Know (Part 1)
Five years. A lot can happen during that timeframe. You may have heard of the so-called five-year lookback period for Medicaid planning and asset protection planning purposes. If a loved one needs skilled nursing home care, why does the five-year lookback period matter?
In this episode of Into the Woods, attorney Hannah Mills joins host Dave Shaffer to dig deep into the five-year lookback period—how it works and why it matters. This is part one of a two-part series devoted to this critical aspect of Medicaid planning. Hannah and Dave explain that to be eligible for nursing home Medicaid, you must have less than $32,396 in countable resources, but Medicaid also cares about how you got there. County caseworkers review five years of financial records, looking for any gifts or large withdrawals. For every $15,127 given away in the last five years, Medicaid will deny one month of coverage—meaning families must pay privately during that penalty period.
The episode explores the difference between nursing home and community Medicaid lookback rules and what caseworkers are searching for when they review bank statements. Hannah and Dave share a cautionary real-life case from Monroe County where an aunt helped her struggling nephew with financial assistance, only to face a three-month Medicaid penalty when she later needed nursing home care.