Why can’t I just give away my assets in order to qualify for Medicaid?
This can result in the worst of both worlds. Gifts within a 5 year “look-back” period make you eligible for a penalty. Once you do qualify for Medicaid, there is a penalty period in which you have to pay the costs on your own. This is determined by dividing the penalty amount by a $330/day “divisor”. This will give you the amount of days in which you are in the penalty period and must pay your own costs and remember this is after you have “spent down” your assets in order to qualify for Medicaid, so you won’t have a lot of money available to pay. Proper planning can help to avoid or defray some of these costs.