Medicaid in an Assisted Living Facility? Think again!
You’ve been looking at assisted living facilities for Mom, who simply can’t be left home alone anymore and who cannot afford round the clock in-home care.
The admissions people at the assisted living facility have asked. “Are you going to be applying for Medicaid?” They’re curious. They want to be paid. It is also the wrong question to ask.
The name of the program is State/County Special Assistance for Adults. Call it “Special Assistance.” Now burn this into a plaque somewhere: “Special Assistance is NOT Medicaid.” The rules can be very different in a few critical areas.
Clients are constantly confused by this (as are many workers in assisted living facilities who should know better). You need to know the differences if someone you care for is in an assisted living facility.
First, a bit of background.
Levels of Care
Do not confuse an assisted living facility or adult care home with a skilled nursing facility. They are two different facilities with different rules and different programs.
A skilled nursing facility (what most of us call a “nursing home”) is a place for folks who are (usually) nonambulatory and with some chronic medical condition that requires skilled care on a daily basis. Think of it as a “step down” from a hospital meant for longer term stays. In the industry we call these “SNFs” (skilled nursing facilities).
Do not confuse these facilities with assisted living facilities. An assisted living facility is a facility for frail individuals who need assistance with a number of what we call activities of daily living (ADLs). Think assistance with bathing and toileting, mobility, personal hygiene, feeding. In the industry we call these ALFs (assisted living facilities).
To add to the confusion, some ALFs have special units usually called “Memory Care” or some similar variation (the bureaucratic term is “special care unit” or “SCU”). A special care unit is a separate area of an ALF with locked doors and a higher level of supervision for residents with various forms of dementia. Care in a SCU is NOT skilled nursing. It is still part of an ALF.
Paying for It
Generally, SNFs are charging around $10,000 a month. As we’ll discuss in a moment, Medicaid will pay for most care in most SNFs for eligible individuals. At 10 grand a month, most folks are keenly interested in whether Mom will qualify for Medicaid. But Mom is in an assisted living facility, so forget about it. If you want to read about Medicaid in a skilled nursing home, read North Carolina Medicaid Nursing Home Rules: The English Translation.
Generally, ALFs run around $3,500 to $4,000 a month for the general areas and perhaps $6,000 to $8,000 for a SCU or Memory Care Unit (those locks and extra supervision get expensive). Medicaid does NOT pay for ALF room and board and most incidental services. They simply aren’t considered “medical.” That’s where Special Assistance comes in.
If Mom is in an assisted living facility and IF she qualifies for SA, there will be a cap on how much they can charge for room and board (basically her income plus whatever the state pays them). Also, if Mom qualifies for SA, she MIGHT qualify to receive some additional personal care services paid for by Medicaid.
Did I just say MEDICAID!? Yes, but it is not the same as nursing home Medicaid. In this case it won’t be very much – perhaps a few hundred or a thousand bucks. Plus, unlike the SNF which has to be happy with the Medicaid payment as complete payment, the ALF might ask for a little bit extra from the family. But at least they aren’t paying “full freight.”
Special Assistance Background
Did I already write that Special Assistance is NOT Medicaid? Special Assistance actually borrows most of the rules that apply to the federal Social Security Supplemental Security Income (SSI) program. There are some significant differences from Medicaid.
Special Assistance Transfer Rules
SA has transfer rules, as does Medicaid. But Medicaid looks at any transfer made within 5 years of applying, divides the value of the transfer by $6,810, and uses that number to establish a penalty period in months that Medicaid will not pay for the SNF . . . beginning when the person is finally in the SNF and otherwise eligible for Medicaid.
SA looks at any transfer made within 3 years. The value of the transfer is divided by $2,000, and the result is used to calculate a number of months the individual is ineligible for SA. Unlike Medicaid, the transfer penalty begins the first day of the month following the transfer.
Special Assistance Asset Rules
These are very similar to Medicaid. A $2,000 countable asset cap. Some differences in real property rules.
A huge difference from Medicaid: SA does not count assets in the name of a spouse! If Mom qualifies for SA, Dad could be a millionaire.
Special Assistance Income Rules
This is VERY different from Medicaid and causes, perhaps, the most confusion. Under Medicaid, if income is less than the SNF’s private pay rate, there is no problem. Most of my clients do not have income exceeding seven or eight thou a month.
Under SA, when qualifying for the general area of an ALF (not the SCU) the gross income cap is just $1,247.50 a month. That’s GROSS income. Count Social Security BEFORE deductions for Medicare or other insurance. Count all other income from any source (well, except VA benefits . . . but that’s another story). If income is a penny over $1,247.50, then forget about general SA.
However, if Mom has dementia and needs to be in the Memory Care unit, the cap is $1,580.50. That helps some, I guess.
Here is how crazy the rules are. Remember Mom with millionaire Dad? She is drawing just $500 a month Social Security. All assets are transferred to Dad. SA only looks at Mom. She is qualified for SA.
Now think of Mom, who is widowed. She has just a few thousand dollars in countable assets. Her gross income is $1,248. Too bad. She doesn’t qualify. After years of working around this issue, I still have trouble accepting it.
Estate Recovery
SA has none! Estate recovery is a Medicaid issue. Did I already write that Special Assistance is NOT Medicaid?
Now, be careful, if Mom was on SA and managed to receive a few personal care services paid by Medicaid there might be estate recovery when she dies – but we’re talking perhaps a few hundred dollars a month.
I hope this helps clear up some confusion. Now you can amaze them at the assisted living facility when they ask, “Are you going to apply for Medicaid.” You can give them a puzzled look, then a knowing grin, and say, “No, I’m not. But I will be applying for Special Assistance.”
Questions? Just ask in the box below.
Good work Bob. I knew the income rules were harsh when it comes to SA but you have reinforced this.
Do not know any top notch paralegals that desire to commute to the Queen City.
Best regards,
Monroe Pannell
HI Bob, Another great explanation of your part! I would also recommend that when considering different Assisted Living Communities (with expectations that SA might be required if Mom / Dads resources ($$$$) are limited), ask if they will accept SA / Medicaid. Many will acknowledge they will accept SA / Medicaid after resident has Private Paid for a certain number of months. It is important to get this in writing!
If person receives $550 SS, $550 retirement and VA disability person, how is the qualification figured? What happens if assets exceed over $2000 and there are no family members to transfer assets to?
If assets are over $2,000 the person won’t qualify until they have less than $2,000 assets.
As far as income, how much VA disability does he or she receive?
My husband receives approximately $1,650 per month (gross) in SSDI due to Primary Progressive Aphasia & Frontotemporal Dementia. So you are saying there is absolutely no way to reduce that gross amount to qualify for SA?
Also, do all ALFs and/or SCUs accept SA or are there designated facilities?
If your husband’s gross income is $1,650 per month he is not eligible for SA. Sorry.
Many/most ALFs accept SA; some don’t.
If his gross income is over $1,580.50 he won’t qualify. Sorry.
Have you heard of someone making too little to qualify for Special Assistance Medicaid? My mother gets $700 from SSI. I was told she has to at least be receiving the FBR rate from social security which is $948 to qualify for SA. I offered to write a document out stating that I would agree to pay the difference between the rates but I was told that was not possible.
Not so. You have it backwards. She’s likely good for SA. Check the dropdown under Hot Topics & Info on top of our website. She can’t be making MORE than the SA rate.
Explain about VA benefits??????
Thank you for this explanation! This has been very helpful to me! I’ve tried to search to find out about this before we apply and just to be prepared. And I couldn’t find it ANYWHERE!
Thank you!
What services need to be offered to be considered SCU certified? My dad is in a new Assisted Living Facility and they knew up front that he would eventually be Medicaid. He is now within the $2,000 limit and we need to shop fast.
First, keep in mind that at the assisted living facility it is not Medicaid, but Special Assistance. If the facility is licensed to provide special care unit services they should simply tell you they are so licensed and that they have a special care unit.
My uncle has a chronic disease and he needs help all the time to take his medication. I like how you explain that a nursing home can assist seniors with these types of diseases. I will talk to my dad to see if it would be a good idea to take my uncle to one of those facilities.
Thank you for the informatve articles. We applied for a VA widow’s pension for my mother in June 2018. In September 2019 we still had not received an answer from the VA and my mother needed to move into an assisted living facility. We applied for and received special assistance for her. In April 2020 she was moved to the SCU in the AL facility. Also in April 2020 the VA widow’s pension was approved and we received a lump sum of $25,000 +1250/month. After being so frugal for so long, we now find ouselves in a bind to spend down the money by November 16, 2020. Plus we will have trouble in the future keeping her income below the $2000 limit. What is the monthly income cap for SCU special assistance for someone with a VA pension? Thanks for your assistance. Also what large ticket items could we purchase with the VA money to spend it down?
I am a bit confused. If she received the $25,000 lump sum it should have been considered an asset by SA on the first of the following month (May 1, 2020). I’m not sure how November 16 plays in.
You are confusing the SA income limit (which for your mother is $1,58.50 gross) with the asset limit ($2,000). DSS may try to say that the VA pension puts her over the SA income limit, but it DOES NOT. VA monthly pension payments are not countable — that is a battle I have won!
Anyone in the family on disability and under 65?
Thank you for the reply. We know now that my mother was over the limit May 1, but we didn’t understand how that worked, especially with retroactive VA funds. We truly had no idea we would ever see any money from the VA. My mother was 95 when we applied. My sister navigated the dhss and VA systems the best that she could.
October 2020 was time for the SA annual review and that’s when we received a notice from the county social services that we were over the limit and had to show how we would spend down the funds. We replied to the notice they sent that we needed more time. They gave us until November 16 to show how we would spend the money.
My sister was permanently disabled when she was 55. She is now 69.
If your sister was on SS disability (they switched her over to retirement when she hit normal retirement age) and you can prove it, then transfer the funds to her.
SA-3205 E provides: Transfers to the A/R’s Blind/Disabled Child
Any resource transferred to a/r’s blind/disabled child of any age, in addition to the homesite,
is allowable. The blind/disabled child must be determined blind/disabled by SSA.
My mother was denied Special Assistance. Social Services counted part of her Aid and Attendance as pension. This put her income over the limit. Is this correct?
That is NOT correct! Special Assistance uses SSI definbitions of income and SSI specifically excludes VA Aid and Attendance benefits. That is a battle I have fought and won.
What is the Rule/Statute for either State or Federal that I can reference. I talked to VA Service Director for Rowan and he said there were so many laws/rules/statutes. If they knew what to look at they would recalculate. Will you tell me what rule/ statute to look at?
Have the VA rep explain that ALL of the VA benefit (including the so-called “Base Pension” that DSS thinks is countable income) is actually reimbursement for qualified medical expenses. Government benefit programs (including VA) that reimburse for medical expenses are NOT countable income under both SSI and NC SA.
Which county was this, Karen?
Rowan
Social Services in Rowan contacted the VA Service Officer in Rowan and was told that part of my mother’s Aid and Attendance was counted as pension. That VA pension plus her Social Security benefit and a small cotton mill pension put her over the income limit.
Still incorrect. Yes, technically “Special Monthly Pension” consists of a “Base pension” and then an add on if you are “Housebound” or need 24/7 “Aid & Attendance” of others. The various DSS offices had long counted (and some still do) the “Pension” element has income. That, however, is incorrect because SSI (and, thus, NC Special Assistance) excludes from any income amounts received that are based on medical need. Every penny of VA Special Pension (whether Base or A&A addon) received is based on medical need/expenses. Just because the VA rep explained to the DSS caseworker that the VA “Special Monthly Pension” (the official name) consists of (in your mother’s case) a base amount and an A&A add-on doesn’t make it countable for NC SA (a program the VA rep probably doesn’t know a thing about). DSS is wrong.
What about the situation where my client has no income, would otherwise qualify for SSI only, she has not worked enough for SSRI or SSD, but her husband is disabled and receives too much which makes their income over for SSA purposes. Because his income is too high she di6es not receive her SSI money part but does receive Medicaid. They live off his SSD of $1387.00.
Issue I’m having is that she is approved for SA for memory care, but the facility is saying they can’t take her because she has no income of her own and they would not receive their full amount from her if placed?
Does she become separated from her spouse at placement and once in a facility we could apply for her SSI income to get them money?
Ever run across this issue? If so, what to do?
Unfortunately, the facility MAY require additional funds even though she qualifies for SA. Not all facilities do this, and it might be worth shopping around. Yes, she becomes separated from spouse at placement. Deeming applies only if they are living together in the same household. You mentioned “client” so I assume you’re some sort of professional; if so, here’s a citation: 42 CFR § 416.1160(a)(1) (which says: “If you live in the same household with your ineligible spouse, we look at your spouse’s income to decide whether we must deem some of it to you. We do this because we expect your spouse to use some of his or her income to take care of some of your needs.”)
My 74 year old Aunt has “nonspecified dementia and bipolar” diagnosis. Her Gross income is $1404. She has spent down her retirement savings to pay for assisted living facility over 4 years. Now, Medicaid says her income is still too much to qualify. We cannot afford to pay the $3100/mo to keep her in her current facility without assistance. Do you have suggestions? Would SA apply in this case?
AS the article explains, Medicaid has nothing to do with the assisted living facility. So her income is not too much for Medicaid. It IS too much for SA in the general assisted living facility population, but if she moved to memory care (because of her dementia) she’d be OK because her gross income is less that $1,580.50.
Sometimes the ALF will determine if memory care is necessary based on the facility assessment, not the diagnosis of dementia — this was the case with my mother. She is being placed in AL not memory care based on the ALF in-house assessment. She has qualified for “Medicaid” SA but I’m not sure the difference between Medicaid SA and Medicaid PCS — help!!
Medicaid PCS (Personal Care Services) might cover some limited services like occupational or physical therapy. That is in addition to SA. There are two levels of SA: General assisted living and memory care. The income cap, as the article explains, is lower for general assisted living than for memory care.
how does one go about applying for SA
also… what if you have SSI Disability, live in TN and want to move to NC..
SSI is a federal program. Doesn’t matter where you live.
If it is a simple case and you aren’t worried about qualification issues then simply go to DSS and apply. If you’re worried about excess assets or it starts getting complicated find someone who knows what they’re doing (like Mason Law, PC — doesn’t have to be us, but someone who knows what they’re doing).
My father has been receiving SA and been in memory care since April 2019. His homesite was excluded. I have been approached by a buyer and am considering whether or not to sell. This property is in a very economically depressed area and has been subject to flooding a number of times in the last 10 or so years. The property has been in poor condition for many years. The property with 9 acres is assessed for $36,000 with the house being $4,000. The offer I have is $25,000. The SA manual is very confusing about how to prove that the property is worth less than the assessed value. I can’t tell if I just need two knowledgeable opinions of the value or if I have to attempt to sell it for assessed value twice and if so, how long does each attempt need to be?
If you get the written opinion of two realtors or an appraiser and then you sell to a non-family member you ought to be OK. HOWEVER, the sales proceeds will be your father’s and he will then be over the asset level for Special Assistance, at least that is the general rule. If he were on Medicaid (not SA), no one can have Medicaid terminated during the pandemic emergency (so he’d have some time to spenddown). Honestly, I don’t know if that applies to SA, but I have a call in to someone with the state who should know. I’ll update this post when I find out.
OK, Robert. My state contact has confirmed that SA is “no longer playing along” with the emergency. So, in other words, if you sell the home and he has the excess cash, SA will be terminated. Just wanted to make sure I was giving you the straight scoop.
Thank you very much.
My 56 year old brother has active secondary progressive MS, type 2 diabetes, hypertension, is home bound (leaves home only for medical appointments), wheelchair bound, has difficulty with feeding, bathing, taking his 22 pills a day without assistance, is incontinent. He has only 15k in savings and receives SSDI of $1340 per month – no other assets. My 80 year old father has been his caregiver for 6 years. Three weeks ago my father was diagnosed with acute myeloid leukemia, was hospitalized. And now requires 24 hour care as he undergoes treatment. I am taking care of my father. My question is if it’s possible to get him in a skilled nursing home at this point as I cannot take care of him adequately at this point. Thank you.
Quite possibly. What does his physician have to say? Also, many nursing homes will send someone out to do an assessment.
So my husband is on hospice in an ALF. I have his financial and medical POA’s. The fin poa grants authority over real & tangible property. It also grants all specific authorities provided in GS 32C-2-217. Additionally it grants authority to make transactions that may benefit his agent, (me) or any person to whom my agent owes an obligation of support.
All said, all property is in both our names. Can I transfer his interest in the property to myself and therefore make him eligible for SA? He has vascular l AR dementia, CHF and cancer.
Please help as soon as possible, PLEASE! I need help to pay for his ALF.
GS 32C-2-217 allows “gifts” (gratuitous transfers) to any one person in an amount not to exceed $15,000 annually. That includes you. That’s why I dislike the statutory short form POA so much. That being said, what kind of “property” are we talking about? Real property? Banks accounts? Investments? If it is real property, is it the home? If you jointly own certain financial assets, it means either one of you could withdraw the entire account, so the POA shouldn’t hold you back. If the real property is your residence, then it won’t count for SA purposes.
Is there any help for someone that makes $1248 a month? That puts them over the income limit for Special Assistance to help pay for Assisted Living. Are there any programs that can help people that fall in this gap. They don’t have the resources to pay for Assisted Living but they don’t qualify for SNF. Some states like SC allow a program to reduce the monthly income so they will qualify for their voucher program to help pay for ALF. I believe it is called a Miller Trust. Does NC have any type of program to lower the monthly income so they will qualify for Special Assistance for ALF?
Sorry, $1,248 is $.50 over the limit. There is really no recourse. You could try negotiating with the facility, I guess. Miller Trusts apply only to Medicaid in certain states (e.g., SC and Georgia). NC is not a MIller Trust state.
My uncle needs help with most daily tasks (bathing and toilet especially). He’s fallen and been hospitalized multiple times. He gets a pension, which is just enough to prevent him from qualifying for medicaid, but is too little to afford all but the very cheapest and least reputable assisted care or nursing home options. Because it’s a pension, there’s no way to ‘spend it all’ and then let medicaid pick up. What can we do?
Are you talking about your uncle being in a nursing home (Medicaid) or an assisted living facility (Special Assistance). Special Assistance, as the article explains, has a very low income cap. If you’re over it, you’re on your own. Medicaid has a much, much higher income cap (very few ever exceed it).
My mom is on special assurance for ALF. She has been there for 7 years. My father just passed away two weeks ago and she received a letter from SSI stating she will get a combined amount now of 1758.00 she was married to him for only 12 years and he has been remarried for 38 years. Can we request to deny the extra survivor funds. They have been divorced for 40 years. If we can’t figure something out this new amount will cause her to lose her special assistance and we would have to figure something else out. SSI mentioned two records her total now increased and another records I guess for his. Do you have to count survivor benefits as income. Can it be appealed and removed?
That’s harsh — and there is not much that can be done.
My mother is 79 years old and currently lives in a 55 and older apartment complex. She receives about $800 per month in social security and is receives section 8 assistance for her rent.
She has type 1 diabetes and neuropathy in hands and feet. She has fallen twice in the past 4 months and called 911 to help pick her up from the floor. I am not certain what the next step should be for getting her assistance with daily life She also has trouble walking, cleaning, bathing and does not drive.
Well, you’ve read the right article and from the way you’ve described your mother she very well might qualify for Special Assistance. If you believe she is no longer safe in her current situation you could begin by looking at some assisted living facilities.
What happens when survivors benefits push an elderly person (mom) over the income limit for SA and the only family member (me) has no financial means to cover that person’s care? I’m in this position from having cared for my dad but I see the caregiving nightmare coming for my mom and her survivor benefits (when dad dies-they’ve been divorced since 1990) will push her over the limit. Meanwhile I make a poverty wage after losing my career and house some years ago to care for a destitute father until he could get SA. There’s a multiyear wait list for inhome care via Medicaid. I can’t sleep at night thinking of this.
That’s a tough spot to be in. I’m sorry. You didn’t say what her income would be, but the income caps are going up in 2023. Maybe this will help.
My dad needs ALF (dementia but physical health is ok) and my mom is going to apply for special assistance for him. He is below the max income level. However, they own a house in both their names with a life estate. Will she be able to stay in home and could she sell in order to find a smaller more manageable home for just her to live in? Since his name is on the deed how will that work if she sells but the intent is to find something like a condo or duplex that is smaller and no yard maintenance? Her income without him is only around $500.
There are expedited procedures available before the clerk of court to transfer home ownership to your mother. Or, if he has a power of attorney that would allow someone to sell his share, that can be done and his share of the proceeds transferred to your mother. Ty.ransfers between spouses are exempt. At some point you may want to spend a few dollars to make sure it is done correctl
Also I keep seeing in your posts $1580 is the cap but the ALF info packet I just got is showing $1515. This is for 2022. Which would make my dad ineligible as he gets $1520. I’m confused now. We are working with a social worker to fill out the paperwork for SA for my dad alone for ALF.
See HERE for the 2023 numbers. The $1,515 is the old 2009-2022 “net” income number. The $1,580 was gross before disregards (which are explained in the link I just gave).
What does the term income producing property imply when applying For S.A. in N.C. Does this term prevent my Dad from receiving S.A. even though he’s already in assisted living / memory care facility ?
Just what it says: Property that is producing income. If it is producing income for him, the income produced will be countable income for SA purposes.
Hi Bob. Mom is 93 and a Mecklenburg County resident. Her only income is $1047/month social security and she has no other assets, no spousal VA benefits, no long term care insurance, etc. She does already have Medicaid medical insurance and has had it for last 10 years or so. I was told by the county social services department that she would qualify for SA, however I cannot find any quality assisted living facilities nearby that will accept SA. She does not need nursing care (SNF), just assisted living. However, it seems the better quality facilities only accept “private pay”. So I have been paying out of pocket for her to live in a quality assisted living facility that is very nearby to me, as I am her sole caregiver/family support. She is happy there and doing relatively well, however, I am just no longer able to afford it. The facility says they will only accept private pay. Is there any way for me to get them to accept SA? Or to accept SA plus a lesser private payment from me, to reduce my financial burden?
Not really. You can try telling them your predicament and that you are going to have to move her — they may not call your bluff and may bargain with you a bit (some will). Unfortunately, there is no way to MAKE them take SA.
My mother has vascular dementia and
has SS benefits set at 2,000.00 a month with NO ASSETS or Saving Accts. No facility in the state of NC will take her with just her SS. They claim the family’s should chip in to help. I have tried everything calls adapter calls after calls and getting no where. If u don’t have the $ which is about 3,000.00-8,000.00 a month for the facility then they won’t even speak to u. It’s all about the $$.
I am an only child and I have no help nor have that kind of $$$ to fork out. She obviously doesn’t qualify for Medicaid cuz she makes to much.
None of this makes sense nor is right for the elderly.
I need some advice and guidance for my poor mother.
Sorry for the delay. You are encountering a real problem in our lovely system. Does she have any other issues, like diabetes, incontinence, a fall risk? That might be enough to get her moved up to skilled level of care and eligible for Medicaid (which with the facts you have given) should be a snap.
My wife will need memory care in the not too distant future. We unfortunately did not plan for anything like that. She will qualify for special assistance when that time comes.
My home is our main asset. I may need to sell our home, which is owned by me, and invest the money in order to cover my living expenses since my social security benefit is quite low.
My question is, if I sell the house, will her special assistance be cancelled and will they take the proceeds to pay for my wife’s care since I’m no longer living in it? We made some big mistakes in not planning and I’m pretty worried about what’s coming.
Thanks very much.
Special Assistance counts only those assets that are in your wife’s name. Further, there is no transfer penalty for transfers from your wife to you (her husband). Inter-spouse transfers are exempt. If you sell the hosue make sure the proceeds are in your name only or are immediately transferred to you.
Thanks very much Bob. Really appreciate it.