Understanding the Medicaid Lookback Period

– Medicaid covers extended nursing home and home care assistance, but one must qualify financially.
– Medicaid planning helps qualify for Medicaid financially while still retaining some assets and income.
– The Medicaid lookback period is a certain time period in which gifts or sales of assets for less than fair market value are still considered as assets. – In Connecticut, the lookback period for nursing home and home care coverage is 60 months.
– Any transfers made within this lookback period may result in a penalty period during which the individual will not be eligible for Medicaid.
– The penalty period is calculated by dividing the value of the gift by the average cost of private-pay nursing home care in the state or county where the individual lives.
– Transfers between spouses and certain other transfers are exempt from the lookback period.
– It is important to begin Medicaid planning well before needing long-term care in order to preserve assets.

What Is the Medicaid Lookback Period?