Medicaid Preparation
Medicaid is an essential program for many adults that need long term care. Entering Medicaid is a complicated and often long process that requires the help of a knowledgeable attorney in order to properly plan for and to quality.
What is Medicaid?
Medicaid is a means tested medical insurance program that is provided by the Federal and State government. In order to qualify currently, a person needs to possess only a small amount of non-exempt assets (less than $2000), and receive only a small amount of income (~$2,250/month).
Why is Medicaid important to Seniors?
It is estimated that 70% of the people turning 65 this year will need long-term care in their lifetimes. Long-term care is extremely expensive, ranging from ($3000-10,000 a month) and is not covered by Medicare health insurance. While Medicare (the Social Security based health insurance program) does cover most medical expenses of people 65 and older, it does not cover long-term care stays past 90 days. The heavy costs of long-term care can deplete the savings of even careful savers, and qualifying for Medicaid will likely become a necessity if months in stay turns to years.
What can be done if Long Term Care becomes a necessity?
If it looks like long-term care might be needed in the future, there are many actions that can be taken in advance to prepare for the eventuality. If there is plenty of advance warning, assets can be transferred ahead of time in order to reduce the total amount of assets needed to be spent down on health care. Additionally, there are many types of exempt assets that can be purchased that do not count towards the asset cap. Speaking with an attorney ahead of time can help you know what are the best actions to take prior to needing Medicaid.
What if I am married to someone receiving Long Term Care?
There is no easy or quick answer to this question. The good news is that you are not completely limited to income or asset cap for qualifying for Medicaid. Qualifying your spouse for Medicaid will require a careful examination of your assets, a calculation on how much needs to be spent down, and a date on exactly when to apply for Medicaid. It's a difficult and convoluted process best done with the help and supervision of a knowledgeable attorney.