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June 5, 2008
Senate Budget Has Good and Bad News For Seniors
Last week, my son John, was recognized at the Selectmen’s meeting for achieving the rank of Eagle Scout. At that meeting several Saugus Firefighters were honored for their life saving efforts at the recent house fire on Central Street. After the meeting I was able to chat with Senator McGee, and Representatives Reinstein and Falzone to discuss the state of the budget and express my concerns about a few of the budget provisions.
Last Thursday, the Senate concluded it’s budget debate with some mixed results for seniors. There are differences between the House and Senate budget, so these will have to be worked out in a conference committee.
First, the good news. Senator McGee was happy to report that the Senate found the funds to maintain the personal needs allowance of $72.80 per month for nursing home residents. For about 19 years, nursing home residents were only allowed to keep $60 per month out of their income to pay for their telephone, cable, hairdresser, clothes and other personal needs. Last year it was increased to $72.80 and now the Senate has found the way to maintain that amount. The House budget only allows $65 so now this item will go to a conference committee to agree on the final amount. Representatives Falzone and Reinstein both agreed last week to advocate for the $72.80 per month personal needs allowance. Let’s hope that the rest of the House also agrees.
Governor Patrick had requested $45.8 million to fund the Community First Initiative. The House allocated $15 million and the Senate has allocated $20 million, less than half of the Governor’s request. The Community First Waiver Program is an effort to reform the way seniors receive long-term-care benefits. The Waiver is a program designed to coordinate services to seniors to delay and prevent nursing home placement, enable nursing home residents to transition back to the community and expand services to individuals at-risk for future nursing home placement.
The Senate allocated $8.7 million for the Councils on Aging, about the same as the House Budget. The stage is now set for the leaders of the House and Senate to work out compromises on the differences between the two budgets. I’ll let you know what the final results are.
Not in either the House, or Senate budget, was good news from MassHealth, that effective May 1, 2008, penalty periods for gifts that disqualify an individual from MassHealth have been shortened. For about the last year, if you made a gift and needed MassHealth, you were disqualified for one day for each $256 you gave away. Now, you are disqualified for one day for each $267 you give away. This amount is adjusted annually, based upon the average nursing home cost in Massachusetts. Here’s an example:
Example: On January 1, 2008, Joe gives his grandson $10,000 to help with his college expenses. Joe’s health deteriates and needs nursing home care. Because the gift falls within the 5 year lookback period his disqualification was calculated by dividing $10,000 by $256, or 39 days. Under the new amount of $267, the disqualification period drops by 2 days, to 37 days ($10,000 / $267=37 days).
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