She has been in nursing home for 7 yrs, is bedridden, almost unresponsive in late stages of Alzheimer's.
In fact she has been on hospice care for the last 6 months.
When asked for proof of insurance for renewal, I found out her policy now reads : Face value $2747 plus the cash value of $2227. I thought it was whole life with only face value. I have appt with attorney in 10 days and plan to purchase a funeral plan to pay down the cash value. Been told by Medicaid decision maker that it may still be declared an asset if not completed in a certain way. I am at a loss as I am widowed and cannot pay the $5000 monthly for her care. What time frame do I have to appeal? Or since her assets are too much, rather than appeal, will I simply resubmit application for Medicaid? Note this was the earliest I could get appointment with lawyer. I have not received anything from Medicaid. Representative called nursing home who in turn called me. Do I need something in writing? Is there anything else I should be doing even before appt w/ attorney?
It seems as if Medicaid has denied her eligibility because she is now over-resourced. In any given month, and in most states, she is meant to stay below $2,000.00 in countable resources, which would include any amount she has in cash value whole life insurance. Medicaid looks at and counts the cash value of whole life policies, if the total face value of the policy(ies) exceeds $1,500.00 (in most states). This holds true in your mom's case. In order to have her qualified again for Medicaid, that cash value needs to be spent down immediately & properly. If this is accomplished (she is once again spent down to below $2,000.00 in countable assets) before the end of the month, then Medicaid may reverse their decision to deny. If she is not spent-down by the last day of the month, then she will lose eligibility for that month. You should file for the appeal. It is important that they know that you did NOT know the policy carried any cash value. It is also important for them to know that once you found out, you were pro-active and spent down the funds properly and within the month in question.
As for requesting an appeal, Medicaid usually includes the appeal paperwork and instructions along with the Notice of Decision. They will also provide you with a certain amount of days in which to appeal.
I realize your issue is extremely time sensitive, so please do let me know if you have any additional questions.