What happens if a person moves assets out of their estate up to 5 years prior to qualifying for Medicaid?

Yes, you will be penalized for "gifting" those assets. At approx.10k a month for care in a NH, that 200k would have paid for maybe 20 months of care. 200k would have paid for a nice AL for 2 yrs. In my state, after private paying for at least 2 yrs, Medicaid may pay for ur care at the AL.
So what happens is you apply and are told there will be a penalty period. Someone either pays privately for that period, or someone takes care of you for that period.

There is another thread where a son is having a hard time with Medicaid because his father sold property and distributed the money between his children 2 yrs ago. Now Dad needs Medicaid. His justification is Dad had no idea this was going to happen. Medicaid rules should be part of Estate planning.

Well, you can move in with one of the children you gifted the money to. It is not the governments responsibility to care for you.

Several years ago the Medicaid government funded program was enhanced to stop all the fraud that was going on. Medicaid can and will ask for the money back from the children.

I have to say it is one of the few efficient government programs, they know what to do and how to do it. I am personally glad, as although retired, I still have to pay for this program on my taxes.

You understand that you would not be needing Medicaid if you had kept your assets, right?

Did you do this knowing that you would be broke and then you would just get on welfare? I am just curious because I can't imagine giving away your financial security while you are living.

These are the very situations that cause the stiff, unbending rules. I think that you should get assistance from your kids, they are obviously more financially secure because of your choices, so they can help you until the penalty period is over.

Charles, you're going to get different responses here, some or all will be partially correct but not absolute. There is no clear cut definitive answer, each situation is different and each state is different. Imagine for example you have a major stroke and land in ER and hospital and end up totally incapacitated. Medicaid is subsequently denied and family has no means or ability to provide care. The hospital will not and cannot just throw you out in the street. You likely would be made a ward of the state and they would find placement. If family was gifted money that caused Medicaid to be denied, then Medicaid would likely attempt to try to recover from those that were gifted but you will still be cared for.

Well, when it comes down to it you need a lawyer versed in Medicaid law. Like said, each state is different as each situation.

Here's the link to the other post where the situation is similar.

https://www.agingcare.com/questions/how-can-we-prove-that-money-gifted-by-my-father-last-year-before-needing-to-placed-long-term-wasnt-b-455096.htm

I got the feeling this was a hypothetical situation, and that the OP was trying to understand what would happen if one didn't qualify for Medicaid because of giving away assets.

Thank you @charles5434. I've wondered the same thing, though what I read in some of the responses here makes sense. The snark is unfortunate.

I'm sure many/most people are unaware of that planning is key.

It really depends on the situation. Remember, just being poor and homeless is not a qualification for medicaid. There needs to be a medical need. If that weren't the case, there wouldn't be so many homeless all over the place now.

If you do have medical need and are hospitalized, they can't discharged you to just have you sit on the sidewalk. You have medical need. So with or without medicaid, they'll have to address those needs somehow. Some people have lived in hospitals for years.