A New Jersey Medicaid applicant who paid home health care aides with checks made payable to cash is now ineligible for Medicaid benefits.
D.Z. v. Ocean County Board of Social Services (N.J. Super. Ct., App. Div., No. A-5962-17T3, June 23, 2020).
D.Z. paid individuals for home care assistance for several years prior to applying for Medicaid benefits.
After the application was submitted the caseworker issued a penalty period for payments made to the individuals because there was no formal written agreement in place.
The total amount - $210,579
What does this mean?
D.Z was not eligible for Medicaid for approx 600 days because the funds were considered a non compensated transfer and since she is now in a nursing home that will equate to approx. $220,000 of costs owed to the nursing home.
Why were they a non compensated transfer? because the checks were paid in cash and there was no formal written agreement.
If she were to have consulted with a Medicaid specialist she would have learned that in order to pay an individual for care needs who is not from a professional company, a properly worded written agreement is required by Medicaid rules.
The Long Term Care Medicaid program is very complex. Please consult with a Medicaid expert for proper planning.
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