After Larry’s admission to the nursing home, Betty was in a precarious financial situation. The cost of Larry’s care had depleted their savings, and Betty was left with very little to live on. She faced the harsh reality of financial ruin, which seemed to have no solution.
However, there was a lifeline that Larry and Betty needed to be made aware of the Spousal Resource Allowance (SRA).
The Spousal Resource Allowance (SRA) is a Medicaid provision that permits the spouse of a Medicaid applicant to keep a substantial part of the couple’s assets. This measure is taken to avoid the financial deprivation of the spouse not applying.
The SRA works by considering the assets of both spouses as jointly owned. Regardless of whose name an asset is in, it is calculated based on the asset eligibility of the applicant’s spouse.
For 2023, the Community Spouse Resource Allowance (CSRA) ranges from a minimum of $29,724 to a maximum of $148,620.13.
If Larry and Betty had known about this provision, they could have planned their finances better. Betty could have retained a significant portion of their assets under the SRA, ensuring her financial stability while Larry received care.
This would have alleviated their financial stress and allowed them to focus on Larry’s health and well-being.
Unfortunately, Larry and Betty were unaware of this provision at the time. As a result, Betty had to face financial hardship.
Their story underscores the importance of being informed about such provisions and planning for unexpected situations in life.
In retrospect, knowing about the Spousal Resource Allowance could have changed their lives significantly. It could have provided them with financial security during a challenging time in their lives.
However, their experience serves as a valuable lesson for others – it highlights the importance of being informed about available resources and planning for unexpected situations.
Add a Comment