MEDICAID 101
Protecting Your Assets You Worked So Hard To Earn
What is Long-Term Care Medicaid?
Regardless of whether one is single or married, Long-Term Care Medicaid is available to financially assist everyone who needs nursing home care but lacks the monthly income to pay for it. There are many strategies that can protect your assets from the devastating cost of nursing home care. And best of all, you don't have to go it alone in navigating Medicaid's complex rules.
Where should you start? What should you do? The Medicaid Success Select team knows the answers.
Protecting assets from the mandatory Medicaid spenddown requires skill and Medicaid Success Select has the expertise to help guide you through the whole process.
Eligibility Requirements
To qualify, a person must:
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Require skilled nursing care – Those already living in a nursing home most likely will qualify under Medicaid rules as needing skilled nursing care. For others, Medicaid will assess whether or not they need to be in a nursing home before making any approval.
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Not have too much income.
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Have only assets that don’t exceed what’s allowed, or that are not counted towards eligibility.
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Not give away assets. Medicaid requires patients to first exhaust their own funds for their care before applying for coverage. Under Medicaid rules, assets given away during the five year period prior to applying for coverage are still considered patient assets. The good news is that we have strategies that may undo or at least lessen the impact these gifts have on your eligibility.
Medicaid Success Select can help determine the best strategy to use and guide you through every step of the process.
Why 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. 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.
Medicaid planning for nursing home care is not just married couples, but can also benefit single people. Medicaid planning for a single person begins with an assessment of assets and income as well as any gifts within the five year look-back period to determine the best strategy to use.
A spenddown is usually required in order for the individual to qualify for Medicaid. Countable assets include:
- Cash and bank accounts
- Investment accounts
- Life insurance policies
- Multiple automobiles
- Non-primary residence real estate
Evaluating Assets and Spending Down
Take The First Step Today
Take the first step in protecting your assets by contacting us today. Our Certified Medicaid Planners™ are ready to take your call and help you understand the options you have to protect your legacy you spend a lifetime creating.
Contact us today for:
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Free insights for your situation
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A free customized case analysis
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A free consultation with a Certified Medicaid Planner™