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200 St. Andrews Road
Saginaw, MI 48638
Phone: (989) 792-9641
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140 W. Tuscola St., Suite B
Frankenmuth, MI 48734
Phone: (989) 652-9923
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Deficit Reduction Act of 2005As you are probably aware, the Deficit Reduction Act of 2005 was signed by President Bush in February of this year. This new law changes many of the planning options that have been used for Medicaid planning. To highlight some of these changes: - Increasing the “look-back” period for all transfers made by Medicaid applicants to five years.
- Eliminating the use of “serial divestments” of approximately $10,000 a month for Medicaid planning spend down.
- Changing the start of the penalty period for any transfer made to when an applicant would otherwise be eligible for Medicaid.
- Requiring the State to be named a remainder beneficiary, after a spouse or disabled child, on annuities used to qualify for Medicaid.
- Counting the equity in the home of a nursing home applicant exceeding $500,000 (possibly up to $750,000).
- Eliminating the rounding down feature in determining the ineligibility period.
While Michigan Department of Human Services has not begun to implement this new law, any planning with a potential Medicaid applicant should address the affect of these new provisions. Smith Bovill P.C. counsels clients on elder law and Medicaid planning issues regularly as part of its estate planning, probate, and trust administration practice. This letter, and the information on our web site, is intended to be for informational purposes only. As a result of the constantly changing laws in the Medicaid area, the information provided may change. We would be pleased to discuss this, or any other Medicaid or elder law issues, in more detail. | ANDREW D. RICHARDS
SMITH BOVILL, P.C. | SHARON A. BURGESS
SMITH BOVILL, P.C. | Back To Medicaid Smith Bovill, A Professional CorporationContact Us | 200 St. Andrews Road
Saginaw, MI 48603
Phone: (989) 792-9641
Fax: (989) 792-1116 | 140 West Tuscola Street, Suite B
Frankenmuth, MI 48734
Phone: (989) 652-9923
Fax: (989) 652-3607 | The law offices of Smith Bovill represent clients throughout Michigan including Mid-Michigan, The Michigan Thumb, Arenac County, Bay County, Genesee County, Huron County, Isabella County, Lapeer County, Ogemaw County, Roscommon County, Saginaw County, Sanilac County, Shiawassee County and Tuscola County as well as the cities of Saginaw, Frankenmuth, Bay City, Cheboygan, Flint, Gaylord, Grayling, Midland, Mount Pleasant, and West Branch.
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