Medicaid applicants must prove that they have limited income and assets in order to be eligible for long-term care services. Before beginning the application process, it is helpful to understand what information you will be required to provide to prove your eligibility.
Medicaid is a state-run program, so the rules can vary from state to state. In Illinois, applicants are not eligible for long-term care Medicaid benefits if the applicant's income exceeds the private pay rate at the long-term care facility where the applicant resides. Additionally, Illinois applicants will be limited to $2000 in countable resources.
States require Medicaid applicants to provide the necessary information to prove that they are eligible for benefits. The burden of proof is on the Medicaid applicant—not on the state. In addition to needing to provide identifying information such as a birth certificate and proof of citizenship, following are some of the documents that you may have to provide to the Medicaid agency when you apply for benefits:
- Proof of income. A copy of any pay stubs, Social Security statements, and/or pension checks; income tax returns for the past five years; and verification of any other sources of income, for example, rental income or dividends.
- Bank records. Copies of bank statements for the past five years.
- Property. A copy of the deed to any property owned within the past five years and a copy of the most recent property tax bill.
- Retirement accounts. Statements for the past five years of retirement accounts.
- Insurance. Copies of any insurance policies, including health insurance, life insurance, and/or long-term care insurance.
- Car registration. Registration information for any cars owned by you.
- Burial arrangements. Copies of any prepaid funeral contracts or deeds to burial plots.
The state may use an electronic database to verify some of the information. Intentionally giving false information is a serious offense.
The state looks back five years to determine whether you transferred assets for less than market value within five years of applying for Medicaid. Applicants who gave away assets may be subject to a period of ineligibility.
Not all resources will be counted against you for the purposes of Medicaid eligibility. Personal possessions, one vehicle, your principal residence, and prepaid funeral plans are “noncountable” resources. However, the state will likely still request information about these resources.
After you begin receiving benefits, you are not done. Medicaid reviews your income and assets every year to ensure that you are still eligible. This could involve electronic verification or submitting more documentation.
The Medicaid application process for long-term care coverage is complicated. The process generally takes several months, or longer, as Medicaid keeps asking questions and demanding further documentation for the answers provided. For many applicants, consulting with an attorney, prior to submitting an application for benefits, is strongly encouraged.