Major changes to Medicaid eligibility rules may be on the horizon, with lawmakers proposing to extend the program’s look-back period from five years to seven or even ten.
These discussions are part of broader federal and state efforts to implement Medicaid cuts. If approved, the new rule would be the first adjustment to the look-back period in nearly 20 years, significantly tightening the window for asset protection and requiring earlier, more strategic planning to avoid penalties.
As of early 2025, according to Healthy Policy Ohio, more than 3 million Ohioans, approximately 26% of the state’s population, are enrolled in Medicaid, showing the program’s important role in providing healthcare coverage to a large portion of residents.
At Jarvis Law Office, we offer families a path forward by helping them avoid probate through strategic asset management and trust funding support, all with a one-time, cost-effective fee. Clients retain their financial advisors while gaining the necessary tools for Medicaid planning and asset protection.
Key Takeaways
- The Medicaid look-back period may increase to 7 or even 10 years, limiting future planning options.
- Only transfers made before the law takes effect will follow the current 5-year rule.
- Families may have just 80–90 days’ notice before the new rules are enforced.
- Federal and state proposals aim to cut $880 billion from Medicaid over the next 10 years.
What Is the Medicaid Look-Back Period?
The Medicaid look-back period is the timeframe during which Medicaid reviews your financial transactions to check for asset transfers that could disqualify you from benefits. Currently, this period is five years (60 months) from the date of your application.
If you transfer assets during this period, Medicaid can impose a penalty or delay benefits.
What Is the 7-Year Look-Back Period for Medicaid and Why Does It Matter Now
Recently, growing pressure at both federal and state levels has sparked discussions about expanding the look-back period from 5 years to 7 or even 10 years. This proposed change has left many families asking: What is the 7-year look-back period for Medicaid, and how will it affect us?
Here’s what you need to know:
- Federal and state proposals aim to cut up to $880 billion from Medicaid over the next 10 years.
- The most talked-about proposal is extending the look-back period, which would make preserving family assets significantly harder.
- The last change, from 3 to 5 years, was enacted under the Deficit Reduction Act of 2005, nearly 20 years ago.
- If the look-back period does increase to 7 years, only asset transfers completed before the effective date would be “grandfathered in.”
- Families may get only 80–90 days’ notice before the new law becomes active, leaving little time to plan.
Once the change is announced, the short window to create and fund legal plans may close faster than most families can respond.
Could the Look-Back Period Be Extended to 10 Years?
While a 7-year period is currently the most discussed option, some proposals are pushing even further, extending the Medicaid look-back period to 10 years. Such a change would dramatically increase the time Medicaid reviews past financial activity, making it much harder for families to protect their assets if they wait to plan.
4 Legal Strategies to Protect Your Assets
Despite the uncertain timeline, the good news is that the following legal tools are still available.
Irrevocable Trusts
Assets moved into these trusts are excluded from Medicaid’s calculations, but only if established and funded before the new law kicks in.
Medicaid-Compliant Annuities
Convert liquid assets into monthly income to reduce countable resources.
Long-Term Care Insurance
Provides coverage without draining your estate, especially if purchased early. Although initial premiums are lower and spread out, over time, this can be a more costly approach.
Caregiver Agreements and Gifting Strategies
Structured plans may allow for limited asset transfers without penalties, but legal guidance is necessary.
Check Your Medicaid Eligibility Before Planning
Before making any major decisions, it’s important to understand your current Medicaid eligibility status. Medicaid rules are complicated and vary by state, and with changes to the look-back period on the table, even small asset transfers could impact your ability to qualify.
You can start by using our Medicaid Eligibility Checker, a quick, free way to assess where you stand and what actions you may need to take.
Act Now to Stay Protected Under Current Rules
If the proposed 7-year look-back period takes effect, any delay in planning could reduce your options and increase the risk of Medicaid ineligibility. Acting early preserves your ability to qualify under existing guidelines and protects more of your estate.
Once the change is announced, the window to act may shrink to just 80–90 days, not enough time for many families to set up and fund a trust.
Start your planning today to stay ahead of the rule change and preserve your eligibility under existing guidelines. Contact Jarvis Law Office to schedule a free consultation and learn how we can help you protect your home, savings, and long-term care options before the law changes.
