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Ask Lane Your Own Question
Category: Finance
Satisfied Customers: 9703
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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My Mom went into a nursing home in November and is on NJ

Customer Question

Hello - my Mom went into a nursing home in November and is on NJ medicaid. My father is still living at the house which I understand after either he or my Mom passes away the house sale money will go to Medicaid/nursing home. There is equity in the house now - my parents took out a $50,000 home equity credit line which they've never used but is still open. My father recently took a downturn in his health and we the kids who live out of state feel that my Dad shouldn't live alone anymore and he won't go into a long-term care facility. He's in a rehab facility now and I contacted Medicaid for the purpose of applying for Medicaid for him. While in conversation, the Medicaid person told me, when I asked, that my Dad could use the home equity credit line for home health care even if it meant less money eventually going to medicaid or my Mom's nursing home. I was really surprised at that - can you confirm?
Submitted: 5 months ago.
Category: Finance
Expert:  Lane replied 5 months ago.
Hi,...Yes, that's correct. ...This is many times referred to as Medicaid spenddown....See this from SSA..."What medical bills can be counted toward a spend down?° Your own medical bills.° Your spouse’s medical bills.° Parent’s bills for their children’s spend down.° Bills of a child living with you.° Bills of a child who does not live with you, but whose medical bills you help pay for.° Past unpaid medical bills (sometimes up to 6 years old) for yourself or any of the people named above.° The part of any medical bill not covered by Medicare or private insurance. ° Medical expenses (including insurance premiums) paid for you by certain public programs, for example, the Elderly Pharmaceutical Insurance Program (EPIC) and the Child Health Insurance Program (CHIP)"...What you must be careful about nis TRANSFERRING that money to others
Expert:  Lane replied 5 months ago.
Here's some info directly from Medicaid... here's a excellent article on this fro the attorneys at
Expert:  Lane replied 5 months ago.
Please let me know if you have any questions at all....If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the smile or stars on your screen, and then clicking “submit”)…I receive no crediting at all unless you rate in this way....Thank you!Lane……I hold a law degree, (concentration in Tax Law, Estate law & Corporate law), an MBA, (specialization in finance & tax), as well as CFP and CRPS designations. - I’ve been providing financial, Social Security/Medicare, estate, corporate, both for-profit and non-profit, and tax advice, on three continents, since 1986.
Expert:  Lane replied 5 months ago.

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