Name: 
 

Financing Long Term Care



Multiple Choice
Identify the choice that best completes the statement or answers the question.
 

 1. 

A widower, age 69 owns a home valued at $800,000 with no liens or mortgage.  He receives Social Security and a small pension from the Veteran’s Administation.  If he were to apply to Medicaid for LTC, he would be:
a.
ineligible, he has too much equity in his home
b.
immediately eligible, his home is exempt and his income is low
c.
might be ineligible, his income is too high
d.
must obtain a reverse mortgage on his home and make up the difference in cost of care before Medicaid will pay
 

 2. 

Under the DRA, Medicaid imposes a look back period on asset transfers of
a.
24 months
b.
36 months
c.
48 months
d.
60 months
 

 3. 

Asset transfers for less than fair market value (gifts, bargain sales, etc.) will be subject to which of the following under Medicaid’s look back rules?
a.
penalty period
b.
disallowance of the transfer
c.
10% penalty on the difference between fair market value and transfer value
d.
all of the above
 

 4. 

Carla gave $30,000 to each of her three children.  One year later, Carla applies to Medicaid for assistance in paying for nursing home care.  The state’s average nursing home costs are $4,500 per month.  Assuming Carla qualifies for Medicaid, Medicaid will pay Carla’s long-term care costs: 
a.
immediately
b.
beginning in 6 months
c.
beginning in 10 months
d.
beginning in 20 months
 

 5. 

All of the following 70-year-olds are a good prospects for a reverse mortgage EXCEPT:
a.
Dana, who is in poor health
b.
Martin, who has limited financial means
c.
Tom and Linda, who plan on resideing in their home for the rest of their lives
d.
Molly, who is planning to move in the near future
 

 6. 

All of the following are ways to obtain cash from the insurer of a life insurance policy EXCEPT:
a.
viatical settlements
b.
accelerated benefits provisions
c.
cash surrender
d.
policy loans
 

 7. 

Which of the following sources of cash requires repayment:
a.
reverse mortgage
b.
home equity loan
c.
life insurance policy loan
d.
all of the above
 

 8. 

Approved nursing home expenses will be paid by Medicare:
a.
0% for the first 20 days, all except $100 for the next 80 days, 100% of the last 20 days
b.
100% for the first 20 days, all except copay for the next 80 days, 0% beyond 100 days
c.
all except the daily copay for the first 20 days, 100% of the next 80 days
d.
all except the daily copay for the first 80 days, 100% of remaining days
 

 9. 

A life settlement is closely related to:
a.
policy surrender
b.
policy loans
c.
accelerated benefits
d.
viatical settlements
 

 10. 

Which of the following is a non-countable asset in Medicaid’s eligibility requirements?
a.
qualified retirement plans
b.
life insurance
c.
family burial plot
d.
collectibles
 

 11. 

All of the following are true regarding a personal residence in Medicaid eligibility rules EXCEPT:
a.
if the Medicaid applicant is not applying for LTC benefits, the value of the home does not count as an asset
b.
if the applicant moves out of the home into LTC facilities the value of the home is counted regardless of value
c.
if the Medicaid applicant is applying for LTC benefits, any home equity in excess of $100,000 counts as an asset
d.
Medicaid can place a lien against the home, even if the home is not deemed “countable”
 

 12. 

In most states, Medicaid allows a long-term benefit applicant who is unmarried to retain contable assets totalling:
a.
$1,500
b.
$2,000
c.
$3,000
d.
$5,000
 

 13. 

The income rules for Medicaid eligibility will count all of the following EXCEPT:
a.
earned income
b.
unearned income
c.
Social Security benefits
d.
veteran pensions
 

 14. 

The term “community spouse” refers to
a.
a married recipient of community-based LTC
b.
a married person living in a community property state
c.
the spouse of a person residing in a nursing home
d.
none of the above
 

 15. 

The minimum monthly maintenance needs allowance (MMMNA) is:
a.
income a community spouse may retain and not trigger income eligibility rules of Medicaid
b.
the maximum amount of income a Medicaid applicant may retain and still be eligible for Medicaid LTC benefits
c.
the amount of income a nursing home resident may retain for personal care needs such as toiletries of reading material
d.
none of the above
 

 16. 

Medicaid’s estate recovery system applies to assets of all deceased Medicaid beneficiaries who received
a.
nursing home services
b.
home health care services
c.
community based care
d.
all of the above
 

 17. 

Federal guidelines require state Medicaid programs to provide which of the following to eligible applicants?
a.
home health care services
b.
community based care services
c.
nursing home care service
d.
all of the above
 

 18. 

The level of LTC care services available under Medicaid is
a.
less generous than available under Medicare
b.
the same as available under Medicare
c.
more generous than available under Medicare
d.
more or less generous depending on the state
 

 19. 

Medicare Part A will provide all of the following forms of LTC EXCEPT
a.
home health care
b.
skilling nursing care
c.
occupational therapies
d.
custodial care
 

 20. 

Medicare Part A covers nursing home care only if
a.
the care is certified as  medically necessary by a physician
b.
the patient has been hospitalized for at least 3 days in the previous month
c.
skilled care is provided
d.
all of the above are required for Medicare to cover nursing home care
 



 
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