Many New Yorkers look to the Medicaid program for coverage of their health care expenses. For those eligible, Medicaid covers a wide array of health care services, making access to health care more available to residents. Due to the high cost of long term care, many New York residents apply for Medicaid to assist with the cost of home care or nursing home care.
While many are aware of the five year “look-back” period with regard to eligibility for Medicaid covered nursing home care, there was no “look-back” period for those seeking Medicaid covered long term care services in the community (for example, home care or private duty nursing). Those seeking this type of coverage were only required to submit current financial statements to the local Department of Social Services to evaluate eligibility for Medicaid. Any transfers made prior to the month of application had no effect on eligibility.
However, the 2020-2021 New York State Budget that was passed provides that effective October 1, 2020, individuals seeking Medicaid covered long term care services in the community will need to provide two and a half years of financial statements to their local Department of Social Services for review. Any non-exempt transfers made for less than fair market value will result in a penalty period, or a period of time during which you will not be eligible for Medicaid.
While the implementation date has officially been pushed back to July 1, 2021, it is probable that it will be pushed back through the end of the year due to the likelihood of the public health emergency lasting through 2021.
Useful links for income and resource standards for 2021:
GIS 20 MA/13 – effective January 1, 2021 – 2021 Medicaid Levels and Other Important Updates
https://www.health.ny.gov/health_care/medicaid/publications/docs/gis/20ma13.pdf
New York City Human Resources Administration 2021 NYS Income and Resource Standards and Federal Poverty Levels (FPL)
https://www.millermilone.com/wp-content/uploads/2021/02/2021MedicaidLevels.pdf
Elizabeth Murphy, Esq., Senior Associate
The Power of Attorney is an extremely useful and essential estate planning document to be used when a principal cannot be present, or in the event of unexpected unavailability. On December 15, 2020, Governor Cuomo signed into law several long awaited changes to the New York State Power of Attorney regulations. These changes will take effect on June 13, 2021. The changes are meant to simplify the current challenging process of executing and enforcing a Power of Attorney and to reduce the likelihood that a third party will reject a Power of Attorney. The major changes are as follows:
- The Power of Attorney only has to “substantially conform to the wording” of the Statutory form. This language replaces the requirement that the Power of Attorney matches the “exact wording” of the Statutory form.
- The Statutory Gifts Rider is eliminated. Any provisions with respect to gifting will now be included in the Modifications section.
- A Power of Attorney can be signed at the direction of the Principal if the Principal is physically unable to sign.
- Witness requirements are simplified. Two individuals, who are not named in the Power of Attorney as agents or as permissible recipients of gifts, can witness the instrument. One of the witnesses can also act as the Notary.
- Third parties cannot refuse to honor a Power of Attorney without reasonable cause when it is properly executed. A Court may award damages, including reasonable attorney’s fees and costs, if the Court finds that a third party acted unreasonably in refusing to honor a Power of Attorney.
The new Power of Attorney law will not invalidate a Power of Attorney that was properly executed prior to the effective date of the above-referenced changes. A Power of Attorney executed prior to June 13, 2021 will still be valid as long as it was properly executed under the prior law.
Sara O’Connor, Esq., Associate
