May 1998
The Director - Features
Will Granny or Her Advisor Go to Jail
The Health Insurance Portability and Accountability Act of 1996, which was modified by Congress in the Balanced Budget Act of 1997, is targeted towards professionals who offer clients advice on the disposition of their assets. Under the provision, anyone who, for a fee, knowingly and willfully counsels or assists an individual to dispose of assets in order for the individual to become eligible for Medicaid could face criminal penalties of a $10,000 fine, one year in jail, or both.
In the article Will Granny or Her Advisor Go to Jail?, Joyce Cowan, an attorney in Washington, D.C., explains the details of this provision. Although funeral directors who advise consumers to preplan and prepay funeral and burial expenses are not affected by the provision, developments in this area are still occurring and funeral service professionals should be aware of what is happening.
Cowan works with the law firm Epstein Becker & Green and represents NFDA on Medicaid and health-related issues.
