New York Imposes Restrictions on Medicaid Eligibility for Home Care
New York was the only state that didn’t have a look-back period for Medicaid home care, but that is now changing. New York Medicaid applicants will no longer be eligible for home care if they gave away assets within 30 months of applying.
Posted on October 2, 2020

Medicaid, unlike Medicare, is a means-based program, which means that you are only eligible for it if you have very few assets. The rules are slightly different for nursing home benefits and home and community-based care benefits.
With regard to nursing home benefits, states are required to impose a penalty period on Medicaid applicants who transfer assets without receiving fair value in return. States require a person applying for Medicaid to disclose all financial transactions he or she was involved in during the five years before the Medicaid application. This five-year period is known as the "look-back period." The state Medicaid agency then determines whether the Medicaid applicant transferred any assets for less than fair market value during this period.
With regard to home and community-based benefits, states have more leeway with the rules. Previously New York imposed a five-year look-back period for Medicaid applicants applying for nursing home care, but no look-back period for Medicaid applicants who applied for home care or community-based care. An applicant could give away all his or her assets and then apply for Medicaid community-based care the next day.
Under the new law that went into effect October 1, 2020, applicants for home or community-based care in New York will have to disclose if they transferred assets for less than market value in the 30 months (two and half years) before applying. Applicants who transferred assets will face a penalty period.
More from our blog…
5 Rights That a Trust Beneficiary Has
As a trust beneficiary, you may feel you're at the mercy of the trustee. However, depending on the type of trust, beneficiaries may have rights [...]
14 Essential Questions to Ask Aging Parents This Holiday
Thanksgiving is a time when many families come together. About 45 percent of adults surveyed said they planned to travel for the holiday, per The Vacationer. [...]
Baby Boomers: Inheritance Conversations With Your Children
Not talking to your adult children about their inheritance comes at a cost. Do what you can to manage expectations for adult children as they [...]
2024 Annual Gift and Estate Tax Exemption Adjustments
With the arrival of the new year, revisions to the annual gift tax and estate tax exclusions will be going into effect, as recently announced [...]
Recent blog posts
FREE WEBINAR
5 Things to Know About
Estate Planning
When You Turn Sixty-Five