Planning for long-term care is something most families avoid until it becomes necessary. Unfortunately, that often means facing the high cost of nursing home care without a clear plan in place. Medicaid can help cover those costs, but qualifying for it is not always simple. One of the most important parts of Medicaid eligibility in Louisiana is understanding how the “look-back period” works.
What Is the Look-Back Period?
When you apply for Medicaid to cover nursing home or long-term care costs, the Louisiana Department of Health reviews your financial history to make sure you meet the eligibility requirements. This review includes a five-year “look-back period.”
The look-back period is designed to prevent people from giving away assets or selling property below market value just to qualify for Medicaid. Essentially, the state wants to confirm that you did not transfer money, property, or other valuable assets for less than fair market value within the five years before your application date.
Why It Matters
Medicaid has strict income and asset limits. Many people mistakenly believe they can simply transfer their assets to children or other relatives right before applying. However, if the state finds that any such transfers occurred within the five-year window, it may impose a penalty period.
During the penalty period, Medicaid will not pay for your long-term care costs, even if you meet all other eligibility requirements. This can create serious financial strain, especially for families already facing high nursing home bills.
How the Penalty Period Is Calculated
If the Louisiana Department of Health finds that you transferred assets for less than fair market value during the look-back period, it calculates a penalty based on the total value of those transfers. The state divides the amount transferred by the average monthly cost of nursing home care in Louisiana. The result is the number of months you must wait before Medicaid benefits can begin.
Are There Any Exceptions?
Certain asset transfers are exempt from the look-back penalty. These include:
- Transfers to a spouse who is not applying for Medicaid
- Transfers to a child who is blind, disabled, or under 21
- Transfers of a home to a child who lived there and provided care that allowed the parent to avoid nursing home placement for at least two years
- Transfers to a trust for the sole benefit of a disabled individual under age 65
Because these rules are complex, it is important to consult an attorney before making any financial moves that could affect your Medicaid eligibility.
Planning Ahead Can Save You Time and Money
Medicaid planning is about more than filling out forms. It often requires strategic timing and careful structuring of assets. By working with an experienced Louisiana Medicaid planning attorney well before you need long-term care, you can help protect your savings, your home, and your family’s financial security.
At Losavio & DeJean, LLC, our attorneys have decades of experience helping Louisiana families navigate Medicaid eligibility, protect their assets, and plan for the future with confidence. Whether you are just starting to think about long-term care or are facing an immediate need for Medicaid coverage, we can help you understand your options and avoid costly mistakes.
Talk To an Experienced Louisiana Medicaid Planning Attorney Today
The Medicaid look-back period can be intimidating, but you do not have to face it alone. Losavio & DeJean, LLC is here to guide you every step of the way, from understanding eligibility rules to preparing an effective plan. Contact our office today to schedule a consultation and learn how to protect what matters most.