(updated 12/2011)

Medicaid imposes a period of ineligibility for nursing home benefits on individuals who transfer assets for less than fair market value. The penalty period is based on the value of any assets transferred during the five years prior to application, and starts on the date the assets were transferred or the date the individual becomes eligible for Medicaid, whichever is later.

Countable assets include

• Your bank accounts & certificates of deposit, stocks, U.S. saving bonds
• Land other than your homestead property
• the cash value of life insurance that exceeds $1,500
• More than one automobile
• Some promissory notes, mortgages, and loans
• Equity in your homestead that exceeds $750,000
• Improper asset transfers
• Anything else you can exchange for cash, food, or shelter

Countable assets does not include

Amounts in excess of the these limits are included as countable assets.

• Your homestead property where you live or intend to return if you are in a nursing home, or is occupied by your spouse, or your siblings, or your minor child or disabled child of any age up to $750,000 in home equity (adjusted annually by the CPI).
• Life Care Contract - If someone is supposed to get your house because they took care of you when you were sick, then the agreement must be in writing before you get sick.
• Life Estate - The state puts a value on your care in your home by a caregiver you give your home to even if you give the home after you die. The state will lien your life estate for the value of your care and the caregiver will have to pay off the value when the caregiver sells the home.
• All personal effects and household goods (not including collector's items or antiques that have some value).
• One automobile regardless of value for some programs if used for medical appointments or employment (value is limited to $4,650 for other programs). The Food Stamp program currently exempts any vehicle whose equity value is less than $1,500 for persons aged 60 or older.
• Life Insurance (or Certificate of Deposit designated as "burial fund") owned by the claimant up to a $1,500 face (cash) value is exempt. The claimant and spouse can both have exempted life insurance with a face value of $1,500 or less on each. Also exempt are term life insurance policies with no cash value, group policies provided by an employer or required for employment, policies on the life of an ineligible family member who is not the claimants responsible relative, and some policies on the life of the claimant owned by someone other than the claimant.
• Up to $10,000 (goods and services) in an irrevocable prepaid burial contract, trust, insurance, or other pre-need arrangements.
• gifts of clothing.
• one wedding ring and one engagement ring.
• retroactive SSI or Social Security benefits for up to nine months after you receive them (including payments received in installments).

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Spend down is the difference between your countable assets and monthly income and the amounts allowed by the State. You may spend down your assets and monthly income on allowable medical expenses to become eligible for assistance programs. See your county office of the Illinois Department of Human Services (formerly public aid) for more information.

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Specified net income, for the Food Stamp program, is your net income after certain allowable expenses are deducted, such as SSI income or monthly medical expenses after $35 out-of-pocket costs are paid. See your county office of the Illinois Department of Human Services (formerly public aid) for more information.

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Property & estate claims liens the State has the legal right to recover the amount of financial assistance you receive through certain programs, such as AABD cash and medical assistance. Under certain circumstances, liens and estate claims can be made if you receive services under the Community Care Program. However, you will be notified and must sign an acknowledgement form of a possible lien or estate claim before you receive any benefits or services.

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Citizenship Requirements means you must be and are able to prove that you are a U.S. citizen or eligible immigrant and live in Illinois to receive benefits.

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