New GAO Report Finds Vast Majority of Elderly Have Minimal Assets; Fails to Document Significant Asset Transfers by the Wealthy

A new GAO report on asset transfers was unable to conclude that changing asset transfer rules would save Medicaid the $1.5 billion annually claimed by the Bush administration.  The report notes that 80% of elderly households have annual incomes of less than $50,000, that more than half have non-housing assets of less than $50,000, and that there are insufficient data compiled by the states to support claims that “Medicaid millionaires” are transferring significant amounts of wealth to qualify for long-term care assistance from the government.  Get the full report here.  The GAO report is consistent with an earlier report by the Georgetown Center for Long Term Care which found asset transfers to qualify for Medicaid were an insignficant contributor Medicaid expenditures.  See also this Blog’s earlier discussion of Congressional efforts to crack down on the frail elderly’s access to long term care.