In utilizing the Medicaid five-year scrutiny, authorities validate that individuals have not transferred their wealth or funds without appropriate compensation. This regulation aims to thwart tactics where elder individuals arrange for the state to cover their medical services rather than depleting their own financial means or belongings.
The purpose of Medicaid includes financing eldercare facilities; however, it necessitates the depletion of private capital before bestowing assistance. Medicaid audits the financial exchanges of elderly individuals for the preceding five years to inhibit the distribution of financial assets or valuables without recompense. Efforts to obscure assets to make Medicaid accountable for eldercare expenses may trigger severe repercussions.
