As a Michigan elder law attorney I stay abreast of changes to the policy manual that controls Michigan Medicaid. DHS has updated the proposed bridges manual which means some of the rules regarding Michigan Medicaid will be changing effective April 1, 2012. Some of the proposed changes have to do with Arm’s Length Transactions, Fair Market Value, Homestead exclusions, and definition of Resources for Medicaid qualification.
Arm’s Length Transaction. Definition of arm’s length transaction was added to help workers determine whether fair market value was received for a resource. The reason for the proposed change was recent court decisions.
Fair Market Value. Clarified the definition of Fair Market Value when determining the amount of divestment. This broader definition is based on recent court decisions.
Homestead. Update definition of Homestead to eliminate more than one domicile on the property from the homestead exclusion. DHS is making this changed because of the abuse of homestead exemption becoming widespread.
Resource. The definition of Resource was added to the glossary to ease of use for workers.