Effective April 1, 2017, the State of New Jersey has increased the Medicaid penalty divisor to $423.95 per day. This means that for every about $13,000.00 that is gifted within the Medicaid five year look back, New Jersey will impose a one month period of Medicaid ineligibility. The Medicaid divisor increased from $332.50 per day to $423.95 per day, an increase of almost $3,000 per month. In other words, an individual engaging in Medicaid planning can protect an additional almost $3,000 per month compared to the previous divisor figure.
If you have any questions on Medicaid planning or nursing home expenses, please contact our office for assistance. The New Jersey Medicaid announcement link is below.