New Medicaid Law Not Effective In Michigan Yet

In February, President Bush signed the Deficit Reduction Act (DRA) S 1932 http://thomas.loc.gov
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.