Many families are surprised to learn that divesting assets before applying for Medicaid can create a penalty period—a stretch of time when Medicaid won’t pay for care, even though the person otherwise qualifies.
What makes this especially stressful is that the penalty period does not begin when the gift is made—it starts only after a Medicaid application is filed and the person is otherwise eligible for Medicaid. Families can find themselves responsible for significant private-pay bills with little warning.
The good news is that planning can still be done even after care is needed. Understanding the rules ahead of time can prevent costly surprises and preserve more for a spouse or family. Learning how Wisconsin’s Medicaid penalty period works now can make all the difference later. Give us a call today to schedule an appointment to learn more.
