If you do not already have a Medicaid plan in place, you should reach out to an attorney and start the Medicaid planning process today. When you apply to get Medicaid overage, Medicaid looks back at five years of financial transactions. If you transferred ownership money or property, including giving money or property as a gift, this could temporarily disqualify you from being able to get Medicaid coverage.
This review of five years of transactions is called the Medicaid five-year lookback rule, and it is a rule meant stop people from gaming the system by just giving away all of their money and property if they get sick and need nursing home care. If you gave away money or property (or sold it to a family member for much less than it was worth), this could result in a period of temporarily disqualification from getting Medicaid to cover you.
The temporary disqualification period is determined by dividing the value of the transferred assets by average monthly nursing home costs in the location where you reside. A larger transfer, therefore, would result in a longer disqualification period. The calculation gives you the number of months of disqualification.
If you transferred $50,000 worth of assets and the average monthly cost of nursing home care where you live is $5,000, then the calculation would be $50,000/$5,000 = 10 months. During this disqualification period, you would not get coverage for nursing home care though Medicaid.