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The American Rescue Plan Act of 2021 (ARPA) includes provisions that immediately impact employers subject to COBRA. For employees or beneficiaries who involuntarily incur a loss of coverage due to termination of employment or reduction of hours from April 1, 2021 through September 30, 2021 ARPA subsidizes the COBRA premium payment through September 30, 2021. For employees or beneficiaries who involuntarily incurred a loss of coverage between November 1, 2019 and April 1, 2021, and who either did not elect COBRA or allowed it to lapse, ARPA creates a current opportunity to elect (or re-elect) COBRA prospectively.

Clients and even certain professional often confuse MEDICARE and MEDICAID. The terms refer to types of benefits that are radically different.

Last month’s article discussed the concept and utility of special needs trusts – a type of trust that is commonly used to benefit disabled persons who are receiving (or may in the future receive) mean-tested public benefits. Here we will review the different types of special needs trusts.

With the release of Notice 2020-79 the IRS has announced the cost-of-living adjustments for pension plans and other related items for the 2021 tax year.

How do I provide for the anticipated future needs of my disabled child without compromising their ability to qualify for government benefits? A special needs trust (sometimes also called a supplemental needs trust) can be a way to bridge that gap.

Nonpayment of a nursing home can be an issue, especially during a period of ineligibility created by gifting. The questions becomes “Who will pay the invoice for the nursing home during this period?”

Under federal law, the Pennsylvania Department of Human Services (DHS) is required to recover the Medical Assistance (MA) costs from the estates of decedents who received MA benefits during life. The official name is the Medical Assistance Estate Recovery Program.

If an individual meets both the health and financial eligibility requirements, Medicaid pays the majority of costs for care services received at home or in a facility. Services provided in the home are under “Medicaid Waiver.”

A look-back period meant to prevent Medicaid applicants from giving away assets or receiving less than fair market value in order to meet Medicaid’s asset limit.

A number of requirements must be met in order for an applicant to become eligible for Medicaid to pay for the applicant’s long-term care.

What is the best way to structure the transfer? Should a client transfer assets into the names of one or more of their children (or other family members)? While person-to-person transfers can work in certain situations, it is more often preferable to transfer assets to a trust that will ultimately benefit the intended family members.

A “combination” or “hybrid” life insurance policy incorporates a long-term care rider into a permanent life insurance policy.

Questions arise when people consider their long-term care needs in the event of a chronic medical condition, disability or disorder. Close to the top of the list is “How do I pay for the medical assistance I will need?” One solution is to purchase a long-term care insurance policy.

Medicaid is a federal program which provides a public health insurance program for people with low income. It is the principal source of long-term care coverage in the United States.

The SBA issued additional safe harbor guidance for PPP loans in FAQs #46 and #47 on May 13, 2020.