What is Medicaid planning and how could it affect you?
Seventy Percent (70%) of people over age 65 will need long term care during their lifetimes. However, as the average annual cost of a nursing home room in the Cleveland Metropolitan area is $73,912.50, such care can quickly deplete all of your savings.
Moreover, Medicare will not cover long-term care costs and many cannot afford Long-Term Care Insurance or may outlive their coverage. That is why so many nursing home residents find themselves on Medicaid. Medicaid provides free long-term care as long as certain income and resource requirements are met. However, because the Medicaid resource limit is so low, without proper planning, you will have to deplete all your resources before you can qualify.
Additionally, if you are thinking that you can simply give the assets away to a family member or loved one, you may want to reconsider. For any assets transferred for less than fair market value within 60 months of the time of Medicaid application, there is a penalty period equal to the value of the transfer. Hence, you could be left without any money or government assistance to pay for the care you need.
There are many Medicaid planning opportunities available in order to not only preserve as much of your savings as possible for you and your loved ones, but also to improve the financial situation of your spouse should you need long term care.
Call a Medicaid planning attorney for additional information
At The Cleveland-based Perla Law Firm we can help you plan for Medicaid, guide you through the application process, and assist you should you be denied coverage. Contact us today to develop a Medicaid plan catered to your needs.