A recent ruling in Connecticut may offer new options for Medicaid planning in Illinois.
Nondisclosure of substantial assets has always been an option for spouses of individuals seeking Medicare assistance in Illinois. If your spouse is seeking Medicare eligibility for long-term nursing home care, you do not have to disclose any asset that has been held solely in your name longer than the applicable “look-back” period (usually 3 years or 5 years). However, for some, nondisclosure comes with a heavy price. The downside is that if you do not disclose your assets, you will not be allowed to keep any assets worth more than the Medicare spousal allowance ($109,560); your spouse’s income would be paid directly to the long-term care facility; and you might be responsible for separate payments to the Illinois Department of Healthcare and Family Services.
However, a recent ruling in favor of a Medicare recipient in Connecticut may change the effect of nondisclosure of assets here in Illinois. Morenz v. Wilson-Coker, 415 F.3d 230 (2nd Cir. 2005). An Appeals Court upheld a decision made by a Connecticut Federal District Court that allowed a Medicare Recipient to remain eligible for Medicare benefits even though the recipient’s spouse had separate assets that exceeded the eligibility amount. The Court stated that 1) when the recipient’s spouse signs a refusal to support the institutionalized spouse and 2) the Medicare recipient assigns all support rights the state, that assignment bars Connecticut’s Department of Social Services from considering the assets of the recipient’s spouse from their initial Medicare eligibility.
While a case of this nature has not been tried in Illinois, the Illinois Department of Family Services is working with the Illinois legislature to implement polies that mirror the federal guidelines. It is only a matter of time before these laws are reflected in Illinois.
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