Most people think that Medicaid is a medical program just for the poor. Another way of looking at it is as a medical loan program if you have assets. A Medicaid application is very thorough examination of all of your finances: income, current and past assets dating back at least 5 years. When the recipient no longer needs assistance, Medicaid must be reimbursed for any assistance it has provided. When those assets are sold, Medicaid will take its cut of the proceeds.

As with most things, there are work-a-rounds that require advance planning. Potential Medicaid applicants with income and assets try to shield those resources with irrevocable trusts, asset disposal at least 5 years prior to the application date, etc.