We paid ourselves back for costs of monthly travel and purchase of groceries and supplies. Our POA allows expenses. We have rental car receipts. Will Medicare allow the rental car reciepts for the 500 mile trips monthly and thus consider the $1k transfer as an amount for expenses under $1k (cars typically cost us 400 to 500 per week). For those grocery and drug store supplies we have only credit card records. We did not maintain a ledger as we are working full time, traveling to see to both parents individual care, and no good at accounting. But not stealing. In fact , for a year we have been paying for their care but now we are facing cancer and retirement, and may need to apply but wonder how the look back detail is requested. What format, what proof? Will they demand physical receipts from drug stores? Etc. Will any perceived unjustified transfer be "made up for" by our paying their bills this year? Seeing an attorney is nigh impossible because we are in a different state and already it is too hard to get time off just to get to the important hospital and doctor events.
https://www.agingcare.com/questions/i-helped-my-parents-get-va-aid-and-attendance-and-now-im-petrified-to-think-that-it-might-cause-my-mom-to-lose-the-survivor-benefit-plan-436710.htm
Look back for Medicaid is 5 years.
In order for it not to be viewed that way while their alive, you would need to have a legally drawn up personal care agreement with taxes paid or a notarized & witnessed Memo of understanding or Promissory Note done and done way, way in advance of any payments to you and before a Medicaid application is ever done.
So - if correct - even though living in AL, you as DPOA are paying yourself 1k a mo for traveling to see them and for “groceries & supplies”.
MediCARE doesn’t care how they spends assets & income.
But MedicAID does. And so does SSA.
When the day comes that either run out of $ to pay for AL or needs a higher level of care so moves into a NH and for either scenario applies for Medicaid to now pay for care, all that $ you as DPOA have paid yourself will likely red-flag the Medicaid application(s) for a transfer/gifting penalty inquiry. If your in AL then you should be able to still be pretty good on ADLs and by being in AL stuff that need assistance should be taken care of within the facility. AL provide for meals; ALs have shopping trips organized to grocery stores, Target, etc. AL have pharmacy partners that do regular runs for RXs, toiletries and sundries for AL residents. There is no required need for you to make a regular treck.... and atop that rent a car to do so, that’s your choice to do. And I’ll bet a case of Prosecco that’s what Medicaid will think and that 1k a mo you’ve paid yourself regularly will either:
1 surface initially when the facility is looking over the documentation needed to accompany the Medicaid application so the NH won’t accept them as “Medicaid Pending” so it’s totally private pay from the get-go till Medicaid approved, OR
2 if you get past that NH initial review, then the Medicaid caseworker will look at the 1k as gifting and place a penalty on the application which means ineligible for Medicaid till the penalty period is over.
Maybe you could do a file to match up every receipt for sundries, and hope that the Medicaid caseworker will gloss over it. But I’d bet, that instead the application gets denied and you’d have to file an appeal. The rub there would be that the facility gets the denial letter so to have them stay there, it’s private pay and with some sort of legally binding contract by you to pay.
If you rent a car & drive for hours to visit them in AL, that’s your choosing & your cost.
Regarding SSA, SSA does not recognize DPOA. If SSA thinks that there’s commingling of funds happening, they can require you to become a representative payee and this requires regular reporting as to how funds spent. How would SSA know..... well When the documentation is sent for the medicaid application, if there’s issues Medicaid can contact SSA or APS or VA if there’s a concern. Stuff like this can snowball. If you want to see them, you shoulder the costs to do so. Their $ needs to be for their care & needs.
I should get together as much paperwork as you've got; do yourself a nice spreadsheet itemising the expenses and costs paid on your loved ones' behalf; make sure it's all neat and tidy and clear; and then run it past whoever's asking.
You do mean Medicaid not Medicare, do you?
And your parents are not together?
Crumbs.
I don't suppose your POA nominates a deputy, does it? If unforeseen events are making this just too much to handle it would be reasonable to see if it's possible for you to hand over at least some of this responsibility.