The Impact of the Look-Back Period on Medicaid Planning

Applying for Medicaid can seem like a daunting task; however, we are here to educate you on the Look-Back Period and provide information on how to mitigate violations of this period so you can submit your application worry free. 

When applying for Medicaid there is an asset (resource) limit that people must adhere to, to be eligible for Medicaid. The Medicaid Look-Back Period is enforced to prevent Medicaid applicants from selling and gifting assets to meet the asset limits. 

What is the Look-Back Period?

The Look Back Period is 60 months or 5 years where all financial transactions are subject to review during a Medicaid application. The Look-Back Period begins the date of one’s Medicaid application. For instance, if someone files their application on January 1. 2024, their Look-Back Period extends to December 31, 2018. 

If you are planning to apply for Medicaid, you must be cautious about financial transactions in this period of time. Transactions that could result in penalization include and are not limited to: money given to a grandchild and a vehicle donated to a local charity. 

If someone is found to be in violation of this Look-Back Period, a penalty period may ensue. For this reason, it is important to note that all financial statements in the Look-Back Period are under heavy scrutiny when one applies for Medicaid. With this information in mind, please remember to document everything to ensure a smooth application process. 

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If you or someone you know needs to talk to a professional, please give us a call for a COMPLIMENTARY consultation at 973-577-9317 or contactus@njelc.com.