Depending on the applicable laws at the time you seek Medicaid qualification, there are a number of plans and strategies that may be used to achieve Medicaid eligibility while preserving assets for future needs. Because Medicaid transfer penalty rules change frequently, it’s critical to consult with a knowledgeable elder law attorney who understands current regulations before starting any Medicaid planning or gifting.
Won’t the state and nursing home take all my assets?
As long as you (or your spouse) are living, the state or nursing home will not take your assets. Medicaid simply will not pay for your care costs until your countable assets have been spent or sheltered. After your death, the state may place a claim against any remaining assets in your name.
Doesn’t my trust protect my assets?
Can’t my children deal with this when I need care?
Not necessarily. As Medicaid rules change and tighten, there are fewer options available for short-term planning. In addition, financial decisions made today—without long-term care in mind—can unintentionally create barriers to qualifying for Medicaid later.
Won’t Medicare or my long-term care insurance pay for my care?
Medicare only covers long-term care when it’s part of rehabilitation following a hospital stay—and typically only pays for the first 20 days. Depending on your Medicare Supplement plan, there may be a significant copay for days 21 through 100.
Long-term care insurance varies widely. If your policy doesn’t include an inflation rider, it may not keep pace with current care costs, which often exceed $200 per day. Many policies now cover home care and assisted living, which means benefits may be used up before nursing home care is even needed.
Have questions about planning for long-term care and Medicaid eligibility?
Call 574.232.3538 to make an appointment with one of our elder law team members to discuss your Medicaid-related questions.
