Changes to Medicaid by Heidi B. Adair

What are the big changes that have occurred in the Medicaid arena?

The rules around qualifying for Medicaid in Indiana changed drastically beginning in July 2024. The two biggest changes center around IRAs and Personal Services Contracts. Prior to July 1, 2024, any IRA account in the name of the community spouse was considered an exempt asset when determining what assets a married couple could keep. After July 1, 2024, IRA accounts are no longer exempt. This means that a married couple with substantial IRAs will have to analyze the income tax burden associated with dealing with the IRA assets to see if Medicaid planning makes financial sense. The second big change deals with personal services. It is now required that there be a written and notarized contract in place before you begin paying for services if the services are provided by an individual and not by someone employed by an agency. It is also necessary that care logs be kept detailing the care provided. Now, more than ever, it is important to plan for your long-term care needs.