title: Medicaid and family wealth transfer.
abstract: OBJECTIVE
  This study examines whether the relationship between making familial wealth transfers and becoming a Medicaid recipient sheds light on the current debate about Medicaid estate planning, whereby some elders transfer their assets to their families to qualify for Medicaid.
  
  
  METHODS
  Using the Health and Retirement Study, we tracked a national sample of community-based elders who did not receive Medicaid at the 1993 baseline interview but became Medicaid recipients during a 10-year time period and examined wealth transfers for these new Medicaid beneficiaries.
  
  
  RESULTS
  Among elders aged 70 or older who did not receive Medicaid in 1993, 16.4% became Medicaid recipients over 10 years. Among these new Medicaid recipients, 17.9% transferred their wealth to family members before receiving Medicaid benefits, with an average transfer amount of $8,507 during the 2 years prior to receiving Medicaid benefits. In addition, 15.2% of community-residing elders entered a nursing home during the 10-year period, and 26.3% of these were covered by Medicaid. Of these new Medicaid recipients living in nursing homes, 12.6% transferred wealth to their families in the mean amount of $4,112.
  
  
  CONCLUSIONS
  Familial wealth transfers do occur before changes in Medicaid eligibility in a small, but nontrivial, number of cases, but the amount transferred is modest, especially among nursing home residents. This finding implies that policies to reduce Medicaid long-term-care expenditures by limiting such transfers may not be very effective.
authors.affiliation: Department of Consumer Sciences, Ohio State University, 1787 Neil Ave., Columbus, OH 43210, USA. lee.42@osu.edu
authors.forename: Jinkook
authors.initials: J
authors.lastname: Lee
authors.forename: Hyungsoo
authors.initials: H
authors.lastname: Kim
authors.forename: Sandra
authors.initials: S
authors.lastname: Tanenbaum
mesh_terms: D000368:Aged; D000369:Aged, 80 and over; D015331:Cohort Studies; D005190:Family; D005260:Female; D005382:Financing, Personal / Q000191:economics / Q000458:organization & administration*; D006801:Humans; D008137:Longitudinal Studies; D008297:Male; D008484:Medicaid; D014481:United States