Arizona Long Term Care System (ALTCS): FAQ
Arizona Long Term Care System (“ALTCS”) is a health insurance program under Arizona Health Care Cost Containment System (“AHCCCS”). AHCCCS is Arizona’s Medicaid health insurance program. ALTCS provides acute and long term care services for persons who are elderly (over age 65), physically disabled or developmentally disabled. Nationwide, the Medicaid program pays for over half of all nursing home costs.
What does ALTCS pay for? ALTCS offers a complete array of acute medical, skilled nursing, assisted living, home health, behavioral health services, home and community based services, and case management services to all eligible persons. Services are coordinated and provided by an ALTCS program contractor selected by the applicant.
Who qualifies for ALTCS benefits? Unlike Medicare, eligibility for ALTCS (Medicaid) is need-based. Applicants must be medically and financially needy to qualify for benefits. In addition to meeting the medical and financial criteria, an applicant must also meet the following conditions to receive benefits:
- Age (65 or older or under 18), blind, or disabled;
- Be a U.S. Citizen or lawful resident alien;
- Be an Arizona resident (physical presence and intent to stay);
- Must apply for all other potential benefits, such as pensions or VA benefits; and,
- Be in an ALTCS approved type of living arrangement.
What is the medical criteria? Elderly or disabled applicants must be at risk of institutionalization, and require substantial assistance with activities of daily living. Medical eligibility is determined by a pre-admission screening (PAS) conducted by an AHCCCS nurse and/or social worker. The pre-admission screening consists of both a functional and medical assessment. The primary consideration is the applicant’s ability to perform his/her activities of daily living (ADL’s). These include mobility, transferring, toileting, dressing, feeding, bathing and grooming. The applicant’s diagnosis, sensory function, orientation, emotional/cognitive behavior and needed medical services and treatments are also scored. Typically, individuals who meet ALTCS medical criteria frequently present with a combination of the following needs or impairments: require skilled nursing care; require regular medical monitoring, require prompting, supervision, or hands-on assistance for ADL’s due to cognitive impairment (e.g., Alzheimer’s disease and/or dementia) or physical disability, incontinence, and/or psychosocial deficits.
What is the 2023 financial criteria? ALTCS applicants must meet BOTH the income and resource criteria, dependent on marital status.
2023 ALTCS Income Limits
Single persons will qualify if gross monthly income is less than $2,742.00.00. Married persons will qualify if the applicant spouse’s gross monthly income is less than $2,742.00, or if both spouses’ gross monthly income is less than $5,484.00.
What if the income is greater than above? The applicant may still qualify by establishing and properly using an Income Only Trust (also known as a Miller Trust). If you require an Income Only Trust, contact our office.
2023 ALTCS Resource Limits
Countable Assets: Countable assets generally consist of bank, investment, and retirement accounts, life insurance (cash value), stocks, bonds, cash on hand, and real property and/or land that is not also the applicant’s primary residence. A single applicant cannot have more than $2,000.00 in countable resources to qualify for ALTCS. The rules are more complex for a married couple where one spouse will be institutionalized. For a married couple, all countable assets are added together (regardless of which spouse is the owner) as of the first month the applicant spouse met medical criteria, and that total is divided in half. This is the allowable Community Spouse Resource Assessment (“CSRA”). Note, however, that the CSRA may not exceed the maximum of $148,620.00, or be below the minimum of $29,724.00. In addition to the half that the spouse may retain, the applicant may also retain $2,000.00 in resources. Under most circumstances, if both spouses in a marriage are applicants, then each is limited to $2,000.00 in resources.
Non-countable Assets: Certain resources are considered excluded and therefore may be retained in addition to the allowable countable resources described above. In general, these resources include the primary residence (applicant’s interest may not exceed $688,000.00), one automobile, certain burial funds or irrevocable burial plans, burial plots, household goods and personal effects, and a few other items.
IMPORTANT: Not meeting all the financial criteria described herein does not mean one cannot become eligible. We can help you meet financial criteria with long term care planning advice. Call us or email email@example.com today to schedule your consultation!
When do I need an attorney?
While the DIY spirit is great, there are certainly times when you should not do it yourself and instead call on a professional. This is one such time! If you or a loved one is currently receiving skilled care, assisted living, memory care, adult care home or home health care or may be in the future and you are concerned about affording such care you should always seek the legal advice of an Elder Law Attorney with knowledge and experience in Medicaid planning.
The ALTCS application process is a complicated maze with plenty of traps for those who are inexperienced in navigating the system. Additionally, the amount of misinformation that is proffered by supposedly “reliable” sources, such as non-lawyers and social workers, causes many individuals to make costly planning mistakes at an already stressful time. Consequently, it is essential that you seek out guidance from an experienced Elder Law Attorney at the outset of any long term care planning. Additionally, applying for Medicaid is a highly technical and complex process which requires copious amounts of financial documentation. Medicaid planning may also involve the use of trusts, deeds, transfers of assets, purchase of annuities, and much more. Experienced lawyers who are familiar with Medicaid (AHCCCS-ALTCS), health care and estate planning laws are best able to help navigate this process and guide families to the best outcomes. At Bivens & Associates, PLLC, our attorneys are knowledgeable in helping clients to plan and find significant financial savings and/or better care for themselves or their loved one.
Despite popular myth, Medicare has a very limited long term care benefit (100 days max in skilled nursing facility) and no benefits paid for memory care, assisted living, or on going non-medical home health care. Medicaid (ALTCS) benefits can be vital to affording qualify long term care services, whether at home or in a facility setting. Proper legal advice can make the difference between impoverishment and financial stability in the face of long term care expense.
More specifically, you should absolutely call us under the following circumstances:
- You need an Income Only Trust (also known as a Miller Trust);
- You own real property;
- You have any amount of “excess” countable resources;
- You are considering making any gift/transfer of assets, or the ALTCS applicant has made a gift/transfer in the last 5 years;
- You have already submitted an ALTCS application, and were denied;
- The ALTCS applicant is married and preservation of assets is desirable to provide for the “well-spouse”;
- You would like to avoid AHCCCS Tefra lien and/or estate recovery rights; or,
- You want your ALTCS application approved and as quickly as possible.
What happens if my parents give away or transfer excess assets to qualify for ALTCS? A person who gives or transfers an asset for less than fair market value 5 years prior to applying for ALTCS must disclose the gift/transfer at time of application; this is known as the “look back period”. The actual penalty, or number of months the applicant will be ineligible for services, depends on the value of the gift/transfer. AHCCCS then calculates a period of ineligibility by dividing the total amount transferred by the average monthly cost of care in the county as determined by ALTCS, which is currently $8,912.70 in Maricopa, Pima, or Pinal Counties, and $8,138.28 in all other Arizona counties. The resulting figure is the number of months of ineligibility, beginning with the month of application.
There are limited instances in which gifts/transfers do not result in a period of ineligibility, such as transfers to/from a spouse, transfers to a disabled child or to a trust for a disabled child’s benefit, transfers to a Special Needs Trust pursuant to 42 U.S.C. 1396p(d)(4)(A) or (C) for disabled persons under age 65, transfer of an excluded resource other than a home, and gifts/transfers not made with the intent to qualify for Medicaid/ALTCS benefits. In addition, any gift made prior to 60 months before applying for ALTCS benefits will not result in a period of ineligibility.
If gifts/transfers have been made or you contemplate making gifts/transfers prior to applying for ALTCS benefits, it is imperative you seek the advice of experienced elder law attorney.
Will ALTCS take my house? Not necessarily. ALTCS has certain limited rights to recover against the ALTCS recipient’s interest in home property: (1) TEFRA lien, and (2) estate recovery program. Call us for legal advice on how to protect your home against lien and estate recovery!
Arizona may impose liens for ALTCS recipients who are permanently institutionalized (i.e., residing in a skilled nursing facility) for at least 90 days. AHCCCS may place a lien on the recipient’s interest in real property during their lifetime, including property owned by a life estate deed and/or subject to a beneficiary deed. AHCCCS shall seek to recover the lien upon the sale or transfer of the real property subject to the lien. However, a lien may not be imposed or a claim recovered on a member’s home if any of the following individuals are lawfully residing in the home: spouse, individual’s child under the age of 21, or blind or disabled child, or an individual’s sibling (who had an equity interest in the home), and who was residing in such individual’s home for a period of at least one year immediately before the date the individual was admitted to a medical institution. In addition, AHCCCS shall not seek to recover the lien or attempt recovery against any real property subject to the lien so long as the member is survived by the member’s spouse, child under the age of 21, or disabled child. AHCCCS shall also not seek to recover a lien on an individual’s home if the member is survived by a sibling who resided in the deceased member’s home and who was residing in the home for at least one year before the member’s institutionalization, or a child resides in the home who lived there for at least two years immediately before the admission to a nursing home and provided care to the parent, which allowed the parent to reside at home rather than in an institution.
If a person has received services through the ALTCS program after the age of 55, then AHCCCS will have a claim to recover the cost of services rendered to that individual during his or her lifetime against assets subject to probate. ALTCS will only recover against the probate estate as defined by Arizona law and will not recover against joint tenancy property, life insurance proceeds or designated beneficiaries on pension plans or IRAs. ALTCS will not implement any estate recovery if the applicant is survived by a spouse or disabled child of any age.
What is “Spend-Down”?
“Spend-down” is the term of art which generally describes the process of maneuvering the countable assets in excess of the applicant’s resource limit to below the applicable limit. For example, the single person countable asset limit is $2,000.00. As such, a single ALTCS applicant who has $80,000.00 in countable assets has $78,000.00 to “spend-down”. Spend-down often involves paying valid debts and expenses, the purchase desirable non-countable assets, gifts/transfers, or a combination thereof depending upon many factors, including marital status, income, expenses, type and value of assets, medical need, placement, as well as personal goals and objectives.
Every circumstance is different and there is no “one size fits all” spend-down plan. If you have “excess assets” we can help you determine the best course of action to preserve assets and qualify for benefits.
Will ALTCS decide where I will live? No, the applicant or his or her legal representative will determine where the applicant resides and receives services. Note, however, that if the applicant resides outside the home, the placement selected must be an ALTCS certified living arrangement.
If I receive ALTCS, will the state take over my social security and pension? No, the state does not literally take over your monthly income or accounts. The ALTCS program rules will, however, prescribe how much is required to be paid in share of cost, room and board, out-of-pocket medical expenses, spousal allowance (if applicable), and/or spending allowance.
How much will I have to pay for my care while on ALTCS? Persons receiving ALTCS paid services may be obligated to pay a portion of their income towards their care, referred to as “share of cost” or “room and board”. The ALTCS program contractor will determine the amount to be paid. The share of cost/room and board amount will vary from person to person, depending on the amount of the recipient’s monthly income, out-of-pocket medical expenses, spousal allowance (if any), and living arrangement.
In general, the state recognizes that the ALTCS recipient will need their income when they reside at home. Therefore, the state allows the at home ALTCS recipient to keep a Personal Needs Allowance of $2,742.00 plus the amount of their out-of-pocket medical expenses. In many instances, ALTCS recipients living at home pay nothing towards the cost of their care.
However, when the recipient is in a residential setting (e.g., skilled nursing, assisted living or memory care) the program contractor will calculate the recipient’s share of cost/room and board expense. Generally speaking, single ALTCS recipients pays the facility the amount of their monthly income less a personal needs allowance and out-of-pocket medical expenses. With married persons, the community spouse may also be entitled to keep a portion of the recipient’s income, known as the community spouse monthly income allowance (CSMIA). A community spouse is entitled to a monthly income of at least $2,288.75 and no more than $3715.50, depending on certain factors and so long as the income is actually made available to the community spouse. If the community spouse does not earn enough on his/her own to cover this amount, then he/she is entitled to draw enough money from the ALTCS spouse’s income to make up the difference. All of the ALTCS recipient’s remaining monthly income, if any, shall be paid to the recipient’s placement. Note, share of cost/room and board is never assessed against the spouse’s income.
The attorneys and legal professionals at Bivens & Associates, P.L.L.C. have helped nearly a thousand families for over 20 years qualify for ALTCS benefits to secure access to quality long term care while also preserving millions in assets. We handle all phases of the ALTCS process: PAS assessments (medical determinations), Community Spouse Resource Assessments, spend-down planning (asset protection), Income Only Trusts, applications, annual re-determinations, appeals and all other related legal work (e.g., estate planning, deeds, etc.) for our clients. Whether you are planning for the future or are currently in crisis, our elder law attorneys can help you chart a course to achieve best personal and financial outcomes for you and your family!
Call 480-922-1010 or email firstname.lastname@example.org today to schedule your consultation with one of our attorneys!
DISCLAIMER: This information is provided for general informational purposes only, and should not be construed as offering legal advice or creating an attorney client relationship between the reader and the firm or author. You should not act or refrain from acting on the basis of any content herein without seeking appropriate legal advice about your individual facts and circumstances from an attorney licensed in your state. Bivens & Associates, PLLC expressly disclaims all liability with respect to actions taken or not taken based on any or all information contained herein. These eligibility criteria numbers herein are effective as of 01/01/2023 and subject to change.