|
November 2001: "Qualifying for
Medicaid Medicaid is a government program which provides assistance to
those who cannot afford There are many people in the community who don't apply for benefits because they don't know they qualify for assistance. A couple in their 80's called me one day, desperate for help. They could not afford to pay for the husband's care and both were going downhill fast. They had met with someone who had told them "You make too much money to qualify for Medicaid." This couple lived in their own home, had a combined income of $1100 per month and $1200 in savings. They could not imagine how to pay $15 per hour for home care services; much less $6500 per month for nursing home care. To be eligible for Medicaid, an individual is allowed to keep $3750 in assets and $625 per month of income. A married couple is allowed to keep $5400 in combined assets and $900 per month of combined income. In some circumstances, when one spouse requires nursing home level of care, there are rules that protect the community spouse and allow for an increase in eligibility levels. In such a case, the couple is allowed to keep between $74,820 and 87,000 in assets (plus one home and one car) and a combined income of $2175. If these eligibility levels are exceeded, the individual or couple needs to "spend down" until they are eligible. In the case of our couple, they merely needed to "spend down" $200 of their monthly income to pay towards his care to be eligible for Medicaid. Since they didn't know this, they struggled for months in trying to take care of themselves without the help they desperately needed. We often read about how much Medicaid and Medicare programs are struggling. Both programs are going to have to "clamp down" to find a way to survive and they will start asking more questions and making more applicants and recipients accountable for their actions. They have no choice if they want to be around for the taxpayers who are currently feeding the funds. The best planning for Medicaid is done ahead of time. There is nothing wrong with creating a trust as part of an estate plan. There is nothing wrong with transferring or gifting assets to those you love. Don't wait until the unexpected day you are admitted to the nursing home or are told you need 24 hour supervision to put a plan in place. Start looking at the possibilities as you face your retirement and are doing your long-range planning. Set up that revocable or irrevocable trust ahead of time. Transfer assets to your children -- for their future OR yours-- ahead of time. Take a look at long term care insurance which is a planning tool and a part of a successful long term care plan. The more dollars you have, the more options you have. If you are reading this and are facing care costs and decisions now, you still may have options you don't know about. Contact a reliable, objective, honest professional to assist you in the proper planning techniques. Care managers will help you sort through the maze of options and costs and help you choreograph a plan that works best for you. Ask your professional if he or she can explain the "penalty period" to you. If he or she can't, he or she is not the right one for you. Planning ahead with the right advisors will help you to avoid disputes
at a time when it may be all you can do to get through another day of
sickness or disability. We all make better decisions when we
are unpressured, healthy and resilient. Don't waste any more time
saying "It will never happen to me." Hope for the best; plan for the worst
and you will be prepared for the future. |