If you or a loved one may need nursing home care or long-term care in the future, you’ve likely heard about the Medicaid look-back period — and you may also have heard how confusing and intimidating it can be.
The look-back period is one of the most misunderstood parts of elder law, yet it plays a huge role in whether someone qualifies for Medicaid when they need care the most.
This issue affects families across Eastern Massachusetts, Central Massachusetts, Northampton, the Pioneer Valley, Boston, Longmeadow, Tolland, and across Vermont.
What is the Medicaid look-back period?
Medicaid reviews your financial history for the five years (60 months) before you apply for benefits.
During this review, Medicaid looks for:
Gifts of money
Transfers of property
Assets sold for less than fair market value
Large or unusual financial transactions
The goal is to ensure people did not give away assets simply to qualify for Medicaid.
Why what’s reviewed by Medicaid surprises families
Many families make well-intentioned decisions years earlier, such as:
Helping a child with a down payment
Adding a child’s name to a bank account
Transferring a home to “avoid probate”
Unfortunately, these actions can trigger penalty periods that delay Medicaid coverage — even when care is urgently needed.
What happens if Medicaid discovers there’s a violation?
If Medicaid finds an improper transfer:
You may be denied coverage temporarily
The penalty period can last months or longer
Families may have to pay privately during the delay
For nursing home costs that can exceed $12,000–$15,000 per month, this can be financially devastating.
Why planning early for long-term care matters
Proper elder law planning — done before a crisis — can:
Preserve assets legally
Protect the family home
Avoid penalties
Reduce stress for loved ones
This is especially important for families in Massachusetts and Vermont, where Medicaid rules are strict and frequently misunderstood.