Paying for care
Look-back period
The look-back period is the time window Medicaid reviews when someone applies for long-term care coverage. Federal law sets it at 60 months. The state checks for gifts or transfers made for less than fair market value. A transfer in that window can lead to a penalty period with no Medicaid payment for long-term care.
Why it matters for your family
The window is counted back from the date a person is both in care and has applied for Medicaid. Giving a house or savings to a child during that time can cause a penalty. The length of the penalty depends on the amount given and on state rules. Some transfers have exceptions, and states can waive a penalty for undue hardship. A common mistake is to move assets quickly in a crisis without advice. Paying fair prices for goods and services is not a gift, but records matter. Talk with an elder law attorney before moving any asset.
Source: medicaid.gov
Read more: What is Elder Law and Do You Need an Elder Care Attorney?
Related terms
- Medicaid planningMedicaid planning is the legal arrangement of income and assets so a person can meet Medicaid rules for long-term care.
- Spend downSpend down is a way to qualify for Medicaid when your income is above the state limit.
- Medicaid eligibilityMedicaid eligibility for long-term care depends on need, income, and assets.
- Medicaid estate recoveryMedicaid estate recovery is the process where a state seeks repayment from a deceased Medicaid member's estate.
- Elder law attorneyAn elder law attorney is a lawyer who focuses on legal issues of older adults.
- Medicaid asset limitThe Medicaid asset limit is the cap on countable assets a person may own and still qualify for Medicaid long-term care.
