Elder Law Center

One Essex Street

Saugus, Massachusetts 01906

Telephone 781.233.4444   Fax 781.231.2222

August 2, 2007

GOOD NEWS/BAD NEWS FOR SENIORS

I’m pretty upset this week! I just found out that Santa Claus is dead and the Easter bunny was caught in a leg trap, skinned and barbequed!

 What I’m referring to is a new practice by MassHealth (Medicaid in Massachusetts) that requires anyone applying for MassHealth to provide a copy of every check that they have written in the last 5 years. If they find a check written as a Christmas gift, Easter gift, birthday gift, church donation…ANY GIFT AT ALL …the applicant will be disqualified.

 Part of what has me upset about this law that was passed on February 8, 2006 (The Deficit Reduction Act) is that the President and Congress never told anyone about it! Have you written a check, as a gift, to your child or church over the past 5 years? If you have, you will be in trouble if you ever have to apply for MassHealth to pay for long term nursing home care. Your only crime is that you got too old to make a gift.

 Could it be that MassHealth is over zealously applying this new law? Maybe. The Federal regulations allow some gifts, as long as they were not made to impoverish the applicant and were made for reasons other than qualifying for MassHealth. Attorney Neil Winston of Moschella and Winston, of Somerville, Massachusetts has suggested arguing that a hardship exception may eliminate the harsh penalties associated with gifts made by seniors.

 Now for the good news. Nursing home residents on MassHealth give their nursing home all of their monthly income each month for rent. The only exception being that they can keep $60 per month to pay for their telephone, cable, haircuts, clothing and all other personal needs. This amount has been increased to $72.80, and although it is still not enough to cover all of their costs, at least it’s a step in the right direction. Last week, MassHealth send a letter to all MassHealth nursing home recipients informing them of this change.

The final bit of good news for seniors was the case of Boleslawa Grant v. Ronald Preston(SUCV2005-1884).This was a case aimed primarily at protecting the financial rights of elderly women whose spouse is in a nursing home. The problem was that MassHealth assumed that the spouse of a nursing home resident had invested ALL of her assets in 5 year CD’s that earn a very high interest rate, instead of savings accounts and short term investments that earn substantially less interest. This practice resulted in spouses of nursing home residents being short changed in the amount of assets that they are allowed to keep. New regulations have yet to be issued, but the court has ordered MassHealth to use a fair rate of interest, when determining how much assets the healthy spouse can keep when her husband has been placed in a nursing home.

 This article gives general information and not specific advice on individual matters. Persons wanting individualized advice on matters discussed should contact an advisor experienced in those matters. To the extent this article provides information on legal matters, it is based on law in effect in Massachusetts on the date of posting (laws in effect in other states are often quite different).

Ronald H. Surabian is a CPA and attorney who works at the Elder Law Center in Saugus, Massachusetts. He also holds Masters in accounting and a Masters in tax law. He currently serves on the board of directors of the Massachusetts Chapter of the National Academy of Elder Law Attorneys. If you have any questions please call me at the Elder Law Center, One Essex Street, Saugus, MA 01906 (781)233-4444. To view this or any prior article, please visit our web site at www.elderlawcenter.org

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