Can Medicare make me pay back rent my mother insists on paying me?

MediCARE is health insurance, does not care what mom does $wise.

Medicaid however does care what moms income & assets are as Medicaid are “at need” programs for eligibility. If it’s that your mom is going to apply to or has applied to a CT LTC Medicaid program (like care in a facility as a resident eg a NH), that program most likely will want 3-5 yrs of moms banking and other financials to review. Income is info like her annual SSA “awards letters” or pension letter; the letter states to the penny what paid for the income year. SSA sends out late Nov 2022 with info on 2023. Medicaid caseworker has a system or a formula to input all the $#s to see if it makes sense for the applicant to be impoverished now to be “at need” for Medicaid.

Medicaid does NOT expect mom to live on air. But expects all to be reasonable & within FMV for rent in your area. Ideally rent paid in a pattern to you (this to me often gets overlooked, having pattern of payment helps establish its rent, utilities, groceries ea mo). $ paid for supposed rent not an issue. The issue will be if $$$ seems to be unaccounted for or was gifted to others.

For example:
- Mom sells home for $300K 9/2018 & income $1K mo; mom lives with son & pays him $700 mo. ((Let’s say FMV 3 BR house rent $1800 a mo. & utilities avg $300 mo. & mom has her own BR & BA, so 1/3 of costs: $600 rent & $100 utilities. Mom paying $700 mo. is ok)); mom spends $500 a mo on groceries, health copays, personal stuff. Mom on average spends $1,200 - $1,500 a mo.
- Mom has bad fall & after a hospitalization is in NH rehab but realistically cannot go back to Son’s place. Mom needs to become a long term care NH resident.
- NH $10K mo. Mom does not have $ as only $1K mo income & $5K in savings (which she will owe NH). Mom applies for LTC Medicaid.
- Caseworker goes through moms documents & inputs $.
- Problem!….her income total 5 years = $60K (1K x 12 x5); assets 300K on 9/18; her mo expenses 5 years = $90K ($1500 x 12 x 4). $360 -$90 = $270. Should have a least $200K, maybe more. #’s caseworker entered causes a red flag on Medicaid application.

Its #’s like this that are issues for Medicaid. Checks to you to pay for her rent, groceries, etc will be ok.
If $ from house sale, all info in state/co. records. Discrepancy surfaces.
So IF this mom who seems to be missing $200K, has spent $90K dental work, did 4 on her own $15K cruises & spent 1yr in $5K mo facility; her now being impoverished could make sense as she’s spent $210,000. But Medicaid will want to see documentation. Otherwise there’s gifting somewhere……

As long as your mom did not gift $ to you or others or transfer ownership on her home to you w/in last 5 years, she’ll be fine on her Medicaid application. It’s NOT simple or easy but imo is do-able.

If you weren’t real involved in your moms life, you may not know what she spent on so will mean detective work on your part to find things out. Probably the best story I’ve heard on that front was someone who had a Medicaid gifting query on checks FIL wrote to “John Boscoe”. FIL had a stroke so unable to answer ?s. Checks twice a yr. & John Boscoe in different handwriting on back of checks. Medicaid wanted to place gifting penalty. Turns out John Boscoe is a Catholic Saint & FiL had been in orphanages run by Order of Don Boscoe. It was charitable gifting & cleared by Medicaid. The son had no idea.

I would make sure I had an agreement. If you don't want the money put it in a separate account. Do not put Moms name on it but consider it Moms money. Its a savings. Then if she needs anything, you have the money. Be grateful she wants to contribute. Some parents think the children are suppose to pay for their care.

My daughter wanted me to watch her infant son. She makes good money but could never save it. So I told her I wanted to be paid. I put the money into an acct. 5 yrs later they wanted to do a family trip to Universal. Her family and my DH and me. Then she said, got to get some money saved. Told her, no you don't...so we all had a nice trip to Universal and money to spend.

I would make sure that you have a formal agreement, just my way of doing business. CYA!!!! If there is a formal agreement there is little to be concerned about.

You need a formal agreement with the correct legalese. Yes, SS can be used for split share. Perhaps, a free consultation with an elder law attorney would provide the information you need.

Without the agreement the contributions would be considered a gift which may make the person ineligible for medicaid.

It is certainly worth an hour of an attorney's time to get information and an agreement.

I’m curious also, as we’re in the same situation……so which is it - a gift, or their share of living expenses? If they have no assets at all and no income except SS, shouldn’t some of that be able to be used as their contribution toward their living expenses without having to use a lawyer? Would Medicaid truly take issue with that?

No, not if you shared an apartment or she lived in your house and she contributed normal living expenses.

With an agreement prepared by an attorney. Without an agreement Medicaid would consider money mom gives you a gift, making her ineligible for Medicaid.

Do you mean Medicaid?

Your mom should be paying her fair share to live in your house. That is expected of anyone and unless it is obviously a soak, she shouldn't have any problems.

I would not call it rent, that makes it taxable income to you. Share of costs is NOT taxable.