Ask the Expert: 2015 Key Medicaid Dollar Amounts
Q. Every year your firm provides the key dollar amounts that are frequently used in elder law, including Medicaid figures, long-term care insurance deductibility limits, Medicare premiums, Social Security Disability, and Supplemental Security Income. Are these figures available for 2015 yet and, if so, can you tell me what some of the changes are for the coming year? Thank you very much!
A. Yes, most of these figures have been released and we are happy to provide details on what has changed for the coming year! The complete 2015 dollar amounts are available on our website. Be sure to check back often, as we will add any information that has not yet been released and update the page should any changes occur (e.g. the Minimum Monthly Income Allowance adjustment is updated annually on July 1).
2015 Medicaid Figures:
In 2014 and continuing into 2015, Medicaid programs have become more focused on better ways to deliver long-term care services and supports by expanding home and community-based service programs. More states have been able to implement provider rate increases as well as benefit increases as the economy has continued to slowly recover. A recent Kaiser Foundation Report summarizes key changes in 2014/15 as improvements in delivery systems, provider payments and taxes, benefits, pharmacy programs, program integrity and program administration. Read the Kaiser report for details.
When it comes to key dollar amounts, the amounts that have changed are denoted below. Please keep in mind that the Medicaid Divestment Penalty Divisor for Northern Virginia and the rest of the state has not yet been released. Neither has the Monthly Personal Allowance for Elderly or Disabled with Consumer Direction (EDCD) or the Utility Standard. We will update our website as soon as this information becomes available.
Spousal Impoverishment Standards
Minimum Community Spouse Resource Allowance
2015: $23,844
2014: $23,448
Maximum Community Spouse Resource Allowance
2015: $119,220
2014: $117,240
Maximum Monthly Maintenance Needs Allowance
2015: $2,980.50
2014: $2,931
Minimum Monthly Income Allowance: The total Minimum Monthly Income Allowance remains at $1,966.25 – it will be adjusted on July 1, 2015.
Shelter Standard: $ 589.88
Home Equity Cap: $ 552,000
Medicare
According to the Centers for Medicare and Medicaid (CMS), the Medicare program continues to grow stronger and provide important benefits to keep seniors healthy. Among the changes are:
- Continued savings in the Part D coverage gap: In 2015, if you enter the coverage gap, you’ll pay 45% of the plan’s cost for covered brand-name drugs and 65% of the cost for covered generic drugs.
- More information for enrollees: You can visit Medicare.gov/find-a-plan for a list of the Medicare health and prescription drug plans that are offered in your area. This list includes premiums, out-of-pocket costs, plan ratings, and more to help you get started finding a plan that meets your individual needs.
According to CMS, millions of people with Medicare have taken advantage of expanded benefits like preventive services, cancer screenings, and yearly “Wellness” visits — without paying a dollar out-of-pocket. Be sure to take advantage of this benefit in 2015.
Below are the numbers that have changed for the coming year:
Medicare Deductibles, Premiums and Co-pays
Medicare Part A Deductible
2015: $1,260 deductible for each benefit period
2014: $1,216 deductible for each benefit period
Medicare Part A Premium
Most people don’t pay a monthly premium for Part A. However,
if you are one of the small number of people who don’t qualify for free Part A coverage and decide to purchase it on your own, you’ll pay:
2015: $407 each month, which is actually a significant reduction from last year.
Co-payment for hospital stay, days 61-90
2015: $315 per day
2014: $304 per day
Co-payment for hospital stay, days 91 and up
2015: $630 per day
2014: $608 per day
Co-payment for skilled nursing facility stay, days 21-100
2015: $157.50 per day
2014: $152 per day
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Long-Term Care (LTC) Insurance Premium Deductibility Limits
In 2015 the IRS will once again increase the amounts long-term care insurance customers can deduct from their federal income taxes. The IRS’s premium deductibility limits may assist those who itemize their medical expenses. See below for the maximum deductions based on attained age before the close of the taxable year.
40 or younger
2015: $380/yr
2014: $370/yr
41 to 50
2015: $710/yr
2014: $700/yr
51 to 60
2015: $1,430/yr
2014: $1,400/yr
61 to 70
2015: $3,800/yr
2014: $3,720/yr
Over 70
2015: $4,750/yr
2014: $4,660/yr
Social Security and Supplemental Security Income
Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 1.7 percent COLA for 2015. The increase was preceded by a 1.5 percent COLA for 2014, 1.7 percent COLA for 2013, 3.7% adjustment in 2012, and a 0% adjustment in 2010 and 2011.
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Social Security Disability Thresholds
Substantial Gainful Activity (SGA)
Non-Blind
2015: $1,090/mo.
2014: $1,070/mo.
Blind
2015: $1,820/mo
2014: $1,800/mo
Maximum Social Security Benefit:
Worker Retiring at Full Retirement Age
2015: $2.663/mo.
2014: $2.642/mo.
SSI Federal Payment Standard
Individual
2015: $733/mo.
2014: $721/mo.
Couple
2015: $1,100/mo.
2014: $1,082/mo.
Estimated Average Monthly Social Security Benefits Payable in January 2015
The 2015 amount is after the 1.7% COLA.
All Retired Workers
2015: $1,328
2014: $1,306
Aged Couple, Both Receiving Benefits
2015: $2,176
2014: $2,140
Widowed Mother and Two Children
2015: $2,680
2014: $2,535
Aged Widow(er) Alone
2015:$1,274
2014: $1,253
Disabled Worker, Spouse and One or More Children
2015: $1,976
2014: $1,943
All Disabled Workers
2015: $1,165
2014: $1,146
Thank you for your interest in these key dollar amounts for 2015. We hope this was helpful! We also hope to see you this month or in the new year at one of our seminars in Fairfax or Fredericksburg. As always, if you or a loved one is nearing the need for long-term care or already receiving long-term care, or if you have not done Long-Term Care Planning, Estate Planning or Incapacity Planning (or had your Planning documents reviewed in the past several years), please call The Law Firm of Evan H. Farr, P.C. in Fairfax at 703-691-1888, in Fredericksburg at 540-479-1435, or in Washington, DC at 202-587-2797 to make an appointment for a no-cost consultation.
Virginia 529 Prepaid Education Plan Limited Time Open Enrollment: Plan Ahead for Your Child or Grandchild
We all dream of the day when our child or grandchild is accepted to college. From the time he or she is diapers, we begin planning for great things. We drive them to soccer, gymnastics, and music lessons in hopes that they are talented enough to earn a scholarship to college one day. Then the reality sets in that scholarships are scarce, unless your child is the country’s best point guard or a top bassoon player. We want to do right by our children and grandchildren, but who can afford the astronomical and ever-increasing costs of college?
According to the College Board, the average cost of tuition and fees in 2014 is $30,094 a year at private colleges, $8,893 a year for state residents at public colleges, and $22,203 a year for out-of-state residents attending public universities. Some prestigious private universities and Ivy League schools can even cost more than $50,000 a year. At this rate, you can only imagine what college will cost 10 or 15 years down the road.
In Virginia and 10 other states, parents and grandparents who wish to lock-in current tuition rates can do so using prepaid tuition plans. The Virginia529 prePAID plan covers full tuition and mandatory fees at any Virginia public college or university. And, Virginia public colleges are among the best in the nation. In fact, in Forbes 2014 Top 25 Best Public Colleges, Virginia has three colleges listed, including University of Virginia, College of William and Mary, and Virginia Tech. U.S. News offers a convenient list of all colleges in Virginia, including today’s tuition rates. Note that most of the public colleges on the list are ranked as “Best Colleges” in U.S. News’ Regional College (South) Rankings.
Prepaid tuition programs are currently available for newborns to ninth-graders, and open enrollment in Virginia begins this week! Watch this video about open enrollment for more details. Enrollment for this program opens annually between December 1- March 31, so now is a good time to secure a college education for your child or grandchild.
Besides locking in current tuition rates, 529 college savings plans have several estate planning benefits, as follows:
If you have a very large estate (more than $5 million), you may be looking for ways to reduce its value in order to minimize or avoid estate tax for the beneficiaries of your estate. A 529 Plan allows you to do so, and has additional estate planning benefits for account owners.
As an account owner, you can
• Remove your contributions and any future earnings from your taxable estate;
• Determine the investment elections and allocations of contributions to the account;
• name the beneficiary (only one per account), with the option to change the beneficiary (within certain restrictions) as you choose;
• determine when and how much to withdraw to pay qualified higher education expenses, or non-qualified expenses, and
• decide if and when to close the account.
The combination of these factors is unique to 529 Plans. With other types of accounts, if you maintain control of the assets, the money is considered part of your estate.
Keep in mind that contributions to a 529 account may affect your eligibility for Medicaid. For more details, please read Medicaid: The Perils of Gifting FAQ.
Estate Planning for Parents of Minor Children
If you are contemplating a 529 prepaid tuition plan, you probably have younger children or grandchildren. Many people with or without children delay estate planning, because it’s unpleasant to contemplate our own mortality, and many believe such paperwork isn’t necessary until they reach old age. In reality, estate planning is important for everyone, especially if you’re a mom or dad with one or more children at home under the age of 18.
What would happen if you are killed or incapacitated in an accident, and the police show up at your house to notify the family. If the police find your kids home alone, or with a babysitter, they will have no choice but to call in Child Protective Services and have your kids removed from your home until the system can figure out what to do, and that may take weeks or even months.
A Child Protection Plan is a set of legal documents that includes an Appointment of Temporary Guardian for someone you choose to take immediate custody of your children, a Parental Consent for Medical Treatment form, and a Medical Information form containing information on your child’s medical allergies and conditions, pediatrician information, health insurance information, immunization record, and medication list. If you are in an accident, your Child Protection Plan will help ensure that your children are never turned over to Child Protective Services because the police don’t have clear instructions from you and, if the unthinkable happens, your Child Protection Plan will help ensure that your children are not turned over to Foster Care strangers chosen by an overburdened social services system that doesn’t care about your wishes or who you would prefer to take custody of your children. Please read more about the Child Protection Plan and the importance of estate planning for parents with young children on our website.
When your child or grandchild’s education is paid for, you have the peace of mind that you locked in the current tuition rate and that you can afford to send them to college. In addition to taking care of this, as you can see, everyone needs the peace of mind that comes with making sure that their legal and financial affairs are taken care of if they become incapacitated, that decisions about health care are carried out the way they’d like even if they’re not able to make them, and that their loved ones are taken care of when that time eventually comes. To begin your Estate Planning or to update your documents, please call 703-691-1888 in Fairfax, 540-479-1435 in Fredericksburg, or 202-587-2797 in Washington, DC, to make an appointment for a no-cost consultation.