Medicaid is a program which helps financially-strapped individuals receive insurance coverage for medical care. Some individuals take advantage of the low cost savings of this program by hiding their assets. The "Look Back" period for Medicaid is the period in which investigators must check transfers of assets to make sure they were not done with the intention of making an otherwise ineligible person appear to be destitute and thus eligible for Medicaid.
Deficit Reduction Act
The Deficit Reduction Act (DRA) of 2005 changed the look back period for Medicaid considerably. Previously, the limit was three years, but the DRA changed that to five years, and the penalty period was changed from the date of asset transfer to the date the person would have otherwise been eligible to receive benefits under Medicaid. Each state must apply the DRA guidelines separately, but the federal look back is five years.
Excluded Assets
In Washington State, certain assets are excluded from the eligibility requirement, so transfers of these assets are not required to be investigated as part of the look back period. Your home, car, life insurance (less than $1,500), prepaid burial plans and most personal effects are not considered assets which count against the possibility of receiving Medicaid. You are also legally able to transfer your home to your spouse, sibling, adult child who lives there as a caregiver or a dependent child under 21, in order to qualify.
