Effect of the Medicaid Deficit Reduction Act on older adults

The Deficit Reduction Act (DRA) was recently enacted and implemented significant changes to Medicaid. Some of these changes may affect enrollment eligibility for older adults who need long-term care such as assisted living or nursing home care. The DRA changes regulations on maintaining personal assets, shortens the time allowed to make monetary donations without a penalty, and requires more legal documentation. These changes could delay enrollment or discourage people from applying for benefits. Physicians who see elderly patients will need to know the basic aspects of the Medicaid program and how the DRA affects eligibility. Physicians should also know where to refer their elderly patients for more information or guidance through the application process.