LONG-TERM CARE MEDICAID PLANNING
Because of increasing longevity, we are seeing more seniors needing skilled nursing care. While the lucky few are able to pay the ever-rising cost of that care, most will face financial devastation.
The chances of winding up in a nursing home rise to 75% if a person is 65 or older. Buying long-term care insurance can be an option to protect assets against that risk. But this option is limited because many people wait too long to buy it and then it is either too expensive or they simply do not qualify for it. Unlike health insurance, long term care insurers underwrite their policies and can deny coverage if there is anything in the person’s health history that may make them a high risk of needing insurance.
Unlike Medicare, Medicaid will pay for nursing home care but only after a person spends down virtually all of their own assets. This is known as the Medicaid spenddown, which is based on a complex set of rules. With a married couple, assets of both spouses are factored into the spenddown formula – regardless of whether or not the couple has a prenuptial agreement. While the home is considered a protected asset from the spenddown, once a person is on Medicaid, the state can come back after the deceased Medicaid recipient’s estate through the estate recovery program to recoup the cost spent by the state for long-term care provided at home or in the nursing home.
Home Health Care
Nursing Home Care
According to the *Genworth study in 2019 the below figures are the average cost of care. Since 70% of seniors will require a long-term care stay in their lifetime it’s important to understand how you can plan for and pay for care.