How to Transfer Property Title to Qualify for Medicaid

Medicaid is a federally and state-funded, state-operated health insurance program for certain low-income individuals, including pregnant women and children, the elderly and disabled. Medicaid requires that specific resource limits be met, including $2,000 or less in assets. Assets include individual retirement accounts, stocks, checking and savings accounts, cash on hand, vehicles (one is not counted), land, houses (other than the primary residence) and other cash-value assets. Assets made be transferred to become eligible for Medicaid, but penalties may be incurred.

Instructions

• 1

  Calculate the cash value of your applicable assets and subtract $2,000 from this value, or $3,000 if you are married. This is the total amount of property that must be transferred to become eligible for Medicaid. For example, if you own property worth $12,000, have $2,500 in your checking account and a second car worth $4,000, the total value of your assets is $18,500, so $16,500 will need to be transferred to become eligible for Medicaid.

• 2

  Dispose of any property at fair-market value and use as much of this money as possible to pay for necessary expenses, such as past-due medical expenses, prescription drugs and medical supplies that you currently need and shelter costs. Keep receipts and other documentation that show the amount that the assets were sold for and also how the cash was spent.

• 3

  Turn in all documentation to your local Medicaid office and inquire about whether or not you will have a waiting period for Medicaid benefits to begin. The length of the waiting period may be up to 60 months, but if you used the proceeds from your assets to meet your basic needs and are currently under the resource limit, you may not have a waiting period. This is reviewed on a case-by-case basis.