The Deficit Reduction Act of 2005 (DRA 05) became effective on February 8, 2006 and affects all planning completed after that date. The lookback period for all transfers has been extended from three years to five years, and with each transfer, a period of ineligibility for nursing home vendor payment is established. Under the new law, the period of ineligibility begins at the date of application for Medicaid benefits rather than at the time of the transfer of resources. Federal changes to the availability of annuities, promissory notes, long term care insurance, and other planning options have made a significant impact on current Medicaid applications. If anything, DRA 05 has made it more important for clients to plan at a healthy retirement age (65) so that the impact of their planning does not run afoul of a Medicaid application in their late 70’s.