The February 2006 Estate Planning Insights column was entitled “Big Change in Medicaid Laws.” On February 1, 2006, Congress passed the Deficit Reduction Act of 2005. President Bush signed the bill into law on February 8, 2006. This new federal law makes important changes to the rules about qualifying for Medicaid for nursing home costs. These are the biggest changes in this area of law since 1993.
According to the Deficit Reduction Act, some important parts of the new law were to be