New rules concerning continuing care retirement communities:
In most instances the equity in a home owned by husband and wife is an “excluded asset” for Medicaid eligibility purposes. However, if husband and wife sell their home and use the proceeds as an entrance fee to a continuing care retirement community, new rules say that in most instances the entrance fee no longer is an “excluded asset”, but, rather, now is an “available asset”. The change is the combined result of the 2005 Deficit Reduction Act (effective as of February 8, 2006) and proposed changes to the Connecticut Uniform Policy Manual (“UPM”). The UPM is the Manual used to administer the Connecticut Medicaid program.
Please contact our office immediately if you are considering a move to a continuing care retirement community. We may be able to negotiate language in the entrance agreement that will avoid this harsh result.