Ask Mike - Parents residing at an assisted living facility and are running out of money, what options do they have?

Dear Mike,

In your answer about auxiliary grants, the max monthly income is $1,075 per person per month in my area of Virginia (Radford/Pulaski). My parents currently reside at an assisted living facility in Pulaski, Virginia. Between the two of them they receive just over $1600 per month. My dad receives a little over the maximum between his government worker pension and his social security, but my mother earns a bit less than $500. Is there a couple maximum? Between the two of them, they are clearly under a combined individual max. They are currently expending their savings and will run out of money in about 16 months. They have no property or other valuables to sell. The savings that they are now using resulted in the sale of their home. What options do they have?

Thanks for your time.

Gentle Reader

Dear Gentle Reader,

Thank you for your question. You bring up problems that are all too common. Unfortunately, your parents probably aren't going to be eligible for any financial assistance at least until they spend the money they realized from the sale of their home. I will address the issues you raise one-at-a-time, below:

  1. In terms of your question about whether there is combined income eligibility for couples, I would first suggest that you check with your local department of social services. Since the program that provides the financial assistance is not a federal program, but is comprised of 100% state and local funding, the local agency makes the final determination of eligibility. It is definitely worth checking because these rules may be less stringent than those of the federal Medicaid agency. Unfortunately, in most cases for married couples, joint income is considered to apply to both meaning that there isn't a break for couples.
  2. As you check on income rules, you should also ask about any rules governing assets to see if there is any possibility of being able to hang on to the proceeds from the sale of their home and not have to "spend down" virtually all of that money.
  3. It would worth it to explore what's called "division of assets". Many times Area Agencies on Aging (AAA) provide direct assistance or can help with referrals to attorneys or other experts. Check also with the nearest center for independent living (CIL). Basically, division of assets allows a married couple to legally split their incomes so that one spouse can better financially qualify for programs and services. The problem may be that this usually applies to situations where one spouse enters a facility and the other remains at home in the community. Both Aging and CIL information can be found on the PAS Center website under PAS Users, Help In My State.

Finally, you should consider writing to your state legislators and members of Congress and letting them know about these problems. The sad fact is that, financially speaking, your parents would be ahead of the game if they were not married. At least your mom would qualify for financial assistance. This terrible dilemma is all too common around the country; if couples divorce, then they can benefit in terms of financial eligibility for many public programs and services. This is very wrong.

Definitely check with the local social service agency to see if there is any relief from rules governing financial eligibility and check to see if there could be any relief obtained by division of assets.

Again, I wish I had a better solution to the problems you outline. Hopefully, with enough advocacy, these problems will be reformed in the future.

Best of luck to you.

Mike Oxford

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