Location: Westland, Michigan, United States

Graduate of Walsh Institute Of Accountancy (Now Walsh College) Michigan in 1959. Retired in 1987, but still active in the profession **World War II Veteran (Pacific) **PHONE 734-261-1979 **E-MAIL **(Domain Name CPASENSE Registered) **Mentioned in the Journal of Accountancy, SmartPros, Tax Prof Blog, CPA2BIZ, CPA Journal, AccountingWEB, CPATrendlines & More **Search Accounting Blogs: (Includes cpasense)**TOPICS - FINANCE - FEDERAL & MICHIGAN TAXES ** Making Sense Of Your Finance & Taxes

Thursday, July 20, 2006

New Medicaid Law Not Effective In Michigan Yet

In February, President Bush signed the Deficit Reduction Act (DRA) S 1932
which includes changes that tighten Medicaid asset transfer rules and affect Medicaid eligibility for nursing home care. These changes have not yet been enacted in Michigan.

Here is a brief summary:
* A lengthened lookback period - to five years
* Altered start of penalties
* New test of home equity - More than $500,000 in home equity. States have option of raising the threshold to $750,000.
* New proof of citizenship
* Treatment of annuities - Requirement that state be named as a remainder beneficiary to extent medical services have been paid by Medicaid.

Currently, these laws are not in effect in Michigan. It is expected that they will not become effective until sometime in the late fall or early 2007.


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