The Ohio Department of Medicaid is in the process of changing how it treats Individual Retirement Accounts (IRAs). Until now, IRAs have been treated like any other asset that can be liquidated. If someone filed for Medicaid with money in an IRA, they would be required to liquidate the IRA, pay the taxes resulting from that liquidation, and spend the money.
Recent correspondence from ODM indicates that they are in the process of implementing a new rule that will have them no longer count IRAs as assets where the IRA is in a payout status (where the owner is receiving required minimum distributions). This will mean that those IRAs will no longer be part of the calculation of assets to determine Medicaid eligibility, including for Medicaid nursing home coverage.
ODM has not yet issued written guidance or regulations to clarify all of the details of this policy. However, the initial indications would indicate that this will be a very positive step for seniors wishing to protect assets and qualify for nursing home Medicaid.
If you or a loved one have been denied Medicaid coverage being over resourced (having too much value in your assets), this rule may result in a different outcome for you. Individuals and couples currently privately paying for their nursing home may now qualify for Medicaid.
Contact us to see if this rule will impact you and to get all of your Medicaid questions answered.