Massachusetts Elder News

Massachusetts has released emergency regulations implementing the federal Deficit Reduction Act of 2005 (DRA). The DRA among other things dramatically increased the Medicaid penalties for transferring assets, so that any transfers will result in a period of Medicaid disqualification if nursing home Medicaid is applied for within 5 years of the transfer. The penalty is one day for every $246 transferred. The DRA rules apply to all transfers made on or after February 8, 2006. The regulations say they are retroactive to that date, but it may be (it is unclear) that the new regulations will only affect applications submitted on or after July 1, 2006.

The Massachusetts legislature voted to restore the amount the spouse (living at home) of a nursing home resident on Medicaid may keep to the old level of the federal maximum: $99,540, but Governor Romney has vetoed the attempted restoration. Governor Romney in 2003 persuaded the legislature to reduce the Massachusetts spousal allowance to the federal minimum: one-half of the total marital assets other than the home, up to a maximum of $99,540 and not lower than a minimum of $19,908.

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