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I wish OP would come back and give us a clearer picture. For one, why does OP feel that Medicaid would have the ability to take money from their acct? Even if garnishing, it has to go thru legal channels that can be contested.
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bear9281: The five year look back pertains to your father's assets only as it pertains to Medicaid.
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Who is “they”? No one can make withdrawals unless they are on the signature card.
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contact an attorney.

Gena / Touch Matters
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I think there is a lot of assumption here. The OP has not come back and given us more info. Why does OP feel that money will be deducted from his account? Did OP receive a large sum of money from parents that would effect them receiving Medicaid. If so, I don't think Medicaid will be able to touch OPs account because OP is not responsible for the cost parents care in a home. What will happen is a penalty will happen. So, someone pays for the parents stay in a NH until the penalty is satisfied or they take care of the parent until the penalty is satisfied.
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They may not take the moneyout of sibling's account, but they will count that money as an asset applicable to the look back period. Moving the money during lookback time does not hide it from being counted.
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"Claw Back" means they will retrieve the money in some way - but it doesn't mean they are going to go to the account of the person who received it and take it back out. That is reserved in situations for example after a person passes away and Social Security makes an additional payment to the deceased person's account - THEY will just retrieve their money.

Medicaid doesn't work that way. Each state has a Medicaid divisor. And in some states it even varies by facility. Essentially Medicaid basically will say "Ok so mom/dad gave Junior $X during the lookback period. We will use our nifty divisor to tell you how long mom/dad won't qualify for Medicaid to pay for their care and you can decide to either private pay for their care during that time, or you can take them out of the facility and provide care another way until they qualify for Medicaid"

So let's say that your state has a $5,000 a month divisor and they gave him $10,000 - then the "Divestment Penalty Period" would be 2 months during which they would NOT be eligible for Medicaid to pay for their long term care and either the family member would have to pay back that $10,000 towards their care OR they would have to be removed from care and be taken care of elsewhere until they qualify for Medicaid to pay for their LTC.

At least that is the way I understand it from the Medicaid website.
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They aren’t going to take money from anyone’s account, but whatever the gift was, it will be counted towards Medicaid during the five-year look back. Can’t hide it anywhere, nor should you try to.
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They don't and can't grab money from people who received gifts from the Medicaid applicant UNLESS the Medicaid applicant is joint on the account. What happens is that Medicaid sees that the applicant gave big gifts to people during the five year lookback period. If they consider those amounts unreasonable, they will delay the start of Medicaid for as long as those amounts would have paid the applicant's bills. For most people, it's a delay before Medicaid starts (unless it was a lot of money). What often happens in families, unfortunately, is that one child has received a lot of money from the parent who is applying for Medicaid during the five year period. Usually, the child was having problems, so they no long have the money. Then the whole family has to figure out how to pay the parent's care bills until they qualify for Medicaid. Guess what? The child who received the money is seldom able to help with money, and they rarely volunteer as the caregiver. As parents age, they really need to think long and hard about handing out money, and the other kids should really speak up and point out what the parent may be doing to the other children. The parent will not be able to enter a facility unless someone pays. It's ugly to take money from an aged parent when they aren't wealthy. Really ugly.
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The only way they can take money from a sibling’s account is if that sibling gives them permission to deduct money from his/her account. If your sibling does not want to be responsible for paying the bill, he/she should not sign any document giving them permission to do so.
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The five year look back only pertains to Dads finances. In most States 5 yrs of bank statements are required. Any accounts with his name on it are considered his unless proven otherwise. This is why we removed my 80 yr old mother's name from my disabled nephews acct. With the statements, they look for large amounts withdrawn or something out of the ordinary. They will require the reason for the withdrawals. Proof of IRAs, CDs, ect will be needed to.

You say sibling but this is your Dad? No sibling or child's finances will be looked at unless Dads name is on the accounts too. Meaning You may have co-mingled ur money. If these are your accounts Medicaid cannot touch them. From what I understand Medicaid can't go after family to help care for a LO.
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Could you please provide details. I am not certain what you could possibly be talking about. Parents bank accounts should have nothing to do with the bank accounts of their children.

If the question is "do they investigate the accounts belonging to children of people who are applying for Medicaid" the answer is that they DO NOT. Siblings/children in the United States are no responsible to pay for care for their parents in any way. You may hear about "filial" law. But that is basically myth at this point in our country, and what laws are on the books are no implemented.

A five year lookback looks at your PARENT's expenditures. Now if those expenditures are money given to children/siblings of yours, those will be a problem. Not for the sibling, but for the parent, and may prevent that parent from qualifying.

If you can elaborate on your question a bit, give us details of what is concerning you, we may be able to help on a deeper level.


Wishing you the best.
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Katybr Jan 23, 2024
I have an elder law attorney in PA and she said my husband’s mother can gift him LEGALLY (he’s very disabled) only if I open up a separate checking account with me as the main person printed on checks as POA and his name is under mine. I also had to have a letter from his neurologist to keep on file in case she would ever end up in Skilled Nursing (she’s 100 and perfect health) and run out of money and have to apply for Medicaid. The Disabled Child law is for any “child” no matter what age to receive gifts from parents and that is exempt from 5 year lookback! I was shocked to learn of that.
also, Medicaid sometimes tries to take you to court, but, as long as the doctor is on board and testifies (letter) that my husband needs care and she’s helping me it’s legal.
Then, I can take money out of that account and pay for bills at home as he’s living here as if he were in a nursing facility. IF he would end up in Skilled Care, then I would close the account.
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Medicaid is state-specific and this is a global forum.

I don't think Medicaid can go in and claw-back people's money literally and directly especially if they're not the recipient, but it may mean that your parent will be denied.

If you're LO is having a problem or concerned about this, you should talk to an elder law attorney, an estate planner or a Medicaid Planner for your parent's state of residence.
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Your profile says that your dad is in a nursing home. Why are you inquiring about this now? Are you concerned about your father not being able to stay in his facility? Did he give money away to your sibling?
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A 5 year look back is just that......Medicaid is taking a look at what's transpired financially for the past 5 years. To see if large sums of money were given away as a gift or otherwise hidden in an effort to get Medicaid when it wasn't warranted. If they find such a thing took place, they can penalize the applicant by withholding benefits or the like, but they certainly will not take money from anyone's account because it does not belong to Medicaid. All they can do is withhold benefits.
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MargaretMcKen Jan 17, 2024
Absolutely. Dad won't get Medicaid, and the siblings who got the money can argue about how to afford care for Dad.
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