Medicaid is a government health insurance program that is potentially available to people who can demonstrate significant financial need. To put it bluntly, Medicaid provides health insurance for people who are considered poor.
However, it gets complicated when it comes to long-term care. If you are not poor, you will qualify for Medicare when you reach the age of 65; and Medicare will pay for medical or convalescent care. The majority of American senior citizens will eventually need help with their activities of daily living. If you enter a nursing home or assisted living community, you will be receiving custodial care. This is not medical or convalescent care. As a result, Medicare will not pay for long-term care.
Medicaid will cover long-term care costs. People who need long-term care who were always on Medicaid simply use their coverage to pay for the care.
Long-term care is very expensive. The cost of a typical stay in a nursing home can enter the six figures. In some areas a single year in a nursing home costs over $100,000. You may have some retirement resources, and you may be enrolled in the Medicare program. If you need long-term care, what do you do?
You could pay for the care out-of-pocket until you were in fact poor. You would then qualify for Medicaid to cover the remainder of your long-term care costs. Of course, the inheritances that you intended to leave to your loved ones would be gone.
It is possible to plan ahead with Medicaid eligibility in mind. Because there is a five-year look-back period for certain transfers of assets, you may want to act well in advance. If you give away assets within five years of applying, your application for Medicaid coverage may be denied for a period of time that is based on the amount of the divestitures. But there may be options for reducing or eliminating this “penalty period” if you plan carefully.
If you would like to obtain a great deal of in-depth information about Medicaid planning, we have a useful resource for you. Our firm has prepared a special report on Medicaid planning, and the report is being offered free of charge.
To obtain access to the download, click this link and follow the simple instructions: Free Medicaid Planning Report.
Medicaid Planning Consultation
If you take the right steps, you can obtain eligibility for Medicaid coverage and keep a maximum store of assets in the family.
Medicaid rules are complex, and you will invariably have questions about Medicaid planning that can only be answered by a licensed elder law attorney.
We offer free consultations to people in and around Charlotte, North Carolina and Northern Kentucky. To schedule an appointment, contact us through this website.