{"id":365,"date":"2022-11-15T00:00:00","date_gmt":"2022-11-15T00:00:00","guid":{"rendered":"https:\/\/norrismclaughlin.com\/elder-care-special-needs-law-blog\/2022\/11\/15\/the-importance-of-choosing-the-right-medicaid-advisor\/"},"modified":"2022-11-15T00:00:00","modified_gmt":"2022-11-15T00:00:00","slug":"the-importance-of-choosing-the-right-medicaid-advisor","status":"publish","type":"post","link":"https:\/\/norrismclaughlin.com\/elder-care-special-needs-law-blog\/uncategorized\/the-importance-of-choosing-the-right-medicaid-advisor\/","title":{"rendered":"\u201cThe Importance of Choosing the Right Medicaid Advisor\u201d"},"content":{"rendered":"\n

Most individuals think they\u2019ll never find themselves or their loved ones on Medicaid. However, the cost of long-term care is so exorbitant that many middle-income seniors turn to Medicaid to pay for their care in assisted living and nursing facilities. Medicaid is complex, with intricate rules that require special attention and planning. While some individuals file applications for their loved ones, those applications are often denied for errors or missing documentation. A denial can result in months of delay and a gap in coverage, with facilities expecting private payment for those months. Thus, many individuals seek help to complete their application. Typically, two types of professionals assist in filing for Medicaid: attorneys, and non-attorney companies sometimes referred to as \u201cMedicaid Advisors\u201d or \u201cApplication Assistors.\u201d<\/p>\n\n\n\n

Over the last decade, the State of New Jersey has expressed concern about Non-Attorney Medicaid Advisor Companies. In 2016, the Committee on the Unauthorized Practice of Law, appointed by the Supreme Court of New Jersey, issued Opinion 53<\/a>, which addressed whether non-lawyers assisting with Medicaid applications are engaged in the unauthorized practice of Law.<\/p>\n\n\n\n

The committee found that \u201c[a]pplying the law to an individual\u2019s specific circumstances generally is the \u2018practice of law.\u2019 A Medicaid advisor or Application Assistor may provide information on insurance programs and coverage options; help individuals complete the application or renewal; help them with gathering and providing required documentation; assist in counting income and assets; submit the application to the agency; and assist with communication between the agency and the individual. But the advisor may not provide legal advice on strategies to become eligible for Medicaid benefits, including advice on spending down resources, tax implications, guardianships, sale or transfer of assets, creation of trusts or service contracts, and the like.\u201d Opinion 53, Non-Lawyer Medicaid Advisors.<\/p>\n\n\n\n

Despite this opinion, non-attorney Medicaid Planning Companies have flourished in New Jersey. But why?<\/p>\n\n\n\n

Non-Attorney Medicaid Advisors attract consumers by promising lower fees, fast results, and guaranteed approvals. Additionally, some facilities strongly encourage the use of non-attorney Medicaid Advisors, and many families and individuals are unaware they have the right to choose and hire their own counsel.<\/p>\n\n\n\n

The Department of Consumer Affairs has investigated several non-attorney Medicaid Advisors. In December 2019, the State of New Jersey and the New Jersey Division of Consumer Affairs filed a civil lawsuit against Advanta Medicaid LLC d\/b\/a Advanta Medicaid Specialists (\u201cAdvanta\u201d). The State alleged Advanta violated the New Jersey Consumer Fraud Act and advertising regulations by engaging in conduct that included the following:<\/p>\n\n\n\n