Mississippi Governor Remarks On Elder Fraud and Abuse

House.Gov, Mar 28, 2007

Target fraud and abuse. Increasingly, some seniors who worked all their lives to gain wealth suddenly transfer or just hide assets in an attempt to become “poor.” That’s because by achieving poverty, they become eligible for free nursing home care. As The Wall Street Journal noted earlier this year, just enter the phrase, “Medicaid estate planning” into any Internet search engine and you’ll be overwhelmed by offers from the 5,000 members of the National Academy of Elder Law Attorneys and others. “It’s penny-wise and pound-foolish not to consult with an elder law attorney to seek guidance through the process,” advises one attorney. “When you retain us, we will prepare a comprehensive plan to restructure your assets to meet Medicaid program requirements.” To these lawyers, “Medicaid is the primary payer of long term care,” as one put it. In fact, Medicaid was and is supposed to help the poor, not to support lawyers and the people who can afford to hire them. Congress must encourage long-term care insurance and other incentives for those who are not impoverished, but winking at abuse is no longer an option.

It’s also important to recognize the critical role Medicaid is playing to meet the health care needs of Hurricane Katrina’s survivors. In no way will our legislation undermine that care. However, as Mississippi Gov. Haley Barbour recently told me, Hurricane Katrina actually increased the need for Medicaid reforms. In light of the increased health care costs imposed by Katrina, governors are now desperate to get the flexibility they need to manage this program. Indeed, we need these reforms to ensure Medicaid will be there as a safety net in the future for many of these same Americans.