Question about Medicaid / Medicare

[Plackers]

New York.....
I’ve cared for two sisters in my home for the past 20 years. I’m now 75 and fear since we shared the same address I may be responsible for one of my ailing sister’s hospital and nursing home debt because I have power of attorney over her. She’s a pauper because she continues to give every penny to a nephew and never paid her debts. I know Medicaid / Medicare go back 3 months to verify an individual’s spending habits and fear I may be held responsible. Can someone please shed some light on this subject?

 

[Taxing Matters]

I'd need more information to determine just how this would come out. But I can tell you that simply being her agent bu itself won't be sufficient for the creditors to come after you for her debts. Do you have guardianship or conservatorship over her that gives you the power to control her finances? If you do, then you may have a concern about personal liability but the exact details of how you handled that power would be significant. If she's always been in control of her money then the creditors have to look to your sister and her estate when she dies to collect. From what you've said she has little in the way of assets, so the creditors are likely to end up walking away with empty pockets.

 

[Zigner]

New York.....
I’ve cared for two sisters in my home for the past 20 years. I’m now 75 and fear since we shared the same address I may be responsible for one of my ailing sister’s hospital and nursing home debt because I have power of attorney over her. She’s a pauper because she continues to give every penny to a nephew and never paid her debts. I know Medicaid / Medicare go back 3 months to verify an individual’s spending habits and fear I may be held responsible. Can someone please shed some light on this subject?

In addition to the above post, I want to point out that merely sharing the same address doesn't make you responsible for her medical bills either.

 

[commentator]

Medicaid and Medicare are NOT the same thing, and neither of them "goes back three months" for much. There is a five year look back to qualify for Medicaid, to make sure that assets of the person applying for Medicaid have not been moved into someone else's name in an effort to conceal income or keep property from being sold to cover medical expenses. But five years is very different from three months. If your sister has lived with you, does not own any property, and does not have significant assets she should qualify for Medicaid when her Medicare has paid for all the medical assistance it will cover. Whether or not you have power of attorney or have the same address, it is highly unlikely that you would be responsible for her bills.

 

[LdiJ]

Medicaid and Medicare are NOT the same thing, and neither of them "goes back three months" for much. There is a five year look back to qualify for Medicaid, to make sure that assets of the person applying for Medicaid have not been moved into someone else's name in an effort to conceal income or keep property from being sold to cover medical expenses. But five years is very different from three months. If your sister has lived with you, does not own any property, and does not have significant assets she should qualify for Medicaid when her Medicare has paid for all the medical assistance it will cover. Whether or not you have power of attorney or have the same address, it is highly unlikely that you would be responsible for her bills.

There is "go back three months" provision under Medicaid but it has nothing to do with what the OP believes it does. Medicaid will go back to cover medical expenses incurred in the 90 day period prior to the individual being approved for Medicaid. That has nothing to do with looking at spending habits though.

 

[commentator]

You're so right, I'd forgotten that particular "three months" thing.