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submitted 8 months ago by girlfreddy@lemmy.ca to c/news@lemmy.world

As Salvatore LoGrande fought cancer and all the pain that came with it, his daughters promised to keep him in the white, pitched roof house he worked so hard to buy all those decades ago.

So, Sandy LoGrande thought it was a mistake when, a year after her father’s death, Massachusetts billed her $177,000 for her father’s Medicaid expenses and threatened to sue for his home if she didn’t pay up quickly.

“The home was everything,” to her father said LoGrande, 57.

But the bill and accompanying threat weren’t a mistake.

Rather, it was part of a routine process the federal government requires of every state: to recover money from the assets of dead people who, in their final years, relied on Medicaid, the taxpayer-funded health insurance for the poorest Americans.

This month, a Democratic lawmaker proposed scuttling the “cruel” program altogether. Critics argue the program collects too little — roughly 1% — of the more than $150 billion Medicaid spends yearly on long-term care. They also say many states fail to warn people who sign up for Medicaid that big bills and claims to their property might await their families once they die.

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[-] EdibleFriend@lemmy.world 94 points 8 months ago

How am I just learning this is a fucking thing. Since when is Medicare a fucking loan. What is wrong with this fucking country? We are straight up fucking evil.

[-] RedWeasel@lemmy.world 49 points 8 months ago

This is actually Medicaid, not Medicare. Medicaid is often used to cover premiums and copays for Medicare for lower income individuals including people dealing with cancer and such though.

[-] EdibleFriend@lemmy.world 25 points 8 months ago

ah I did type the wrong one, but still...ive never heard of it being treated as a loan like this and I am shocked this isn't more common knowledge.

[-] RedWeasel@lemmy.world 11 points 8 months ago* (last edited 8 months ago)

Yeah, I agree it isn't common knowledge and that the policy needs to change.

[-] reddig33@lemmy.world 20 points 8 months ago

Right, but this still makes it a loan. Which I don’t really understand. I thought Medicaid is a “welfare” program designed to fill in gaps in health care for those who can’t afford insurance.

It is ridiculous how overcomplicated healthcare is in the US.

[-] constantokra@lemmy.one 32 points 8 months ago

It's more evil than you think. There are all sorts of ways to protect assets from Medicaid. Of course, it's only worth doing when there are considerable assets. So basically if you have nothing, Medicaid costs nothing. If you have a little, Medicaid takes it all. If you have a lot, Medicaid will likely take a tiny fraction of your assets. And if you're caught off guard, it takes everything.

[-] whotookkarl@lemmy.world 1 points 8 months ago

You don't inherit debts or crimes that's fucked

[-] snausagesinablanket@lemmy.world 12 points 8 months ago

Since when is ~~Medicare~~ Medicaid a fucking loan

[-] Fredselfish@lemmy.world 5 points 8 months ago

What The Fuck! They take Medicare taxes out of every one of my paychecks. Have for my entire adult life. A program I can't qualify for. And now your telling me it's a fucking loan? No fucking way I pay for it I should get it and no fucking way they getting my house or anything.

I swear they better hope I never get a terminal disease with plenty of time before I die.

When revolution starting we can't continue living this way.

[-] njm1314@lemmy.world 21 points 8 months ago

I personally been learning this lesson recently. Everything you own every single thing should have some kind of transferable or payable on death added to it. Every car every house every bank account every brokerage account Etc..

[-] girlfreddy@lemmy.ca 14 points 8 months ago* (last edited 8 months ago)

That's the way it is in Canada, but it's easier on your family if you have a will. Otherwise it's a mess.

The best thing is all your debts (in your name only) are wiped clean. Anything with spouse's names on them (mortages, shared credit cards, etc) gets transferred to the surviving spouse.

And although our healthcare is in shambles atm (because our provincial premiers are selfish, power-hungry dumbfucks) very few Canadians face the soul-crushing heathcare costs Americans do.

I feel for you all. I can't imagine having to choose to live or die based on how much I have in the bank.

[-] Zerlyna@lemmy.world 12 points 8 months ago

I have two friends whose mom/grandma had to sell their houses before they had coverage for nursing home. I have my name on my dads so I at least get half.

[-] constantokra@lemmy.one 14 points 8 months ago

You should look into putting it in a trust. When someone dies and leaves you an asset the tax basis resets. In other words, if you sell it afterwards, you only pay tax in the increase in value after the death. If you're already part owner, the tax basis on the part you owned starts when you became part owner. Having a lawyer set up the appropriate trust is cheaper than you'd probably think.

[-] cqthca@reddthat.com 9 points 8 months ago

They have been doing that by default. I am elder-caring 4 my mom and don't expect to inherit her house; as she is declining mentally and I'm not trained for full care.

80% of medical spending is on the last two years of life. -- a thing I heards.

[-] snausagesinablanket@lemmy.world 6 points 8 months ago

The ONLY way to protect the asset is to sell it and put the money in an qualified annuity. Medicaid cant touch qualified annuities and you will get what is left after she passes. There is no way to protect the house itself.

[-] Mistymtn421@lemmy.world 2 points 8 months ago

I believe there is a time limit to do that, like 5 years before applying for Medicaid. I am not certain, can't look for the specific link ATM.

[-] Clent@lemmy.world 4 points 8 months ago

This is correct. It is often referred to as the Medicaid look back period. 60 months in most states where they will scrutinize ever transaction.

Used to be three years but congress, specifically a republican congress and president bush II with raised it to five years.

All senate democrats voted against it as well as a couple of republicans but Dick Cheney broke the tie.

[-] cqthca@reddthat.com 1 points 8 months ago

thanks. I'll look into That.

this post was submitted on 16 Mar 2024
208 points (98.6% liked)

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