Given the prevalence and cost of long-term care, all seniors and their families should be knowledgeable about Medicaid and the planning options available to qualify for Medicaid.
Why is Medicaid Planning Important?
The need for long-term care is common but the cost is staggering. Seventy percent (70%) of people over age 65 will need long term care during their lifetimes. The average nursing home stay is 2.4 years. The average annual cost of a nursing home room in the Cleveland Metropolitan area is $73,912.50.
Medicare pays the cost of a skilled nursing facility for up to 20 days, with a co-pay… Read the rest
When a married couple is facing a health crisis for one spouse, there is a myriad of issues to sort through. What care will be needed? Where will care be provided? How will it be paid for?
Medicaid is a government program that pays for long term care. Oftentimes, the couple will utilize Medicaid for the spouse facing long term health care needs. There are rigid resource and income requirements to qualify for Medicaid and planning options available that are beyond the scope of this post, but have been discussed in other blog posts on this site, including http://www.perlalaw.com/medicaid-planning-with-annuities-for-married-couples/… Read the rest
Medicaid covers the cost of long-term care, be it in a nursing home, assisted living community or care at home, if certain eligibility requirements are met. Due to the skyrocketing costs of long-term care, many people who need long-term care will need to consider Medicaid. Medicaid mistakes are common and can be devastating for a family. The following is a summary of the most common Medicaid mistakes to avoid.
- Not Considering Early Planning Options
Medicaid has a five year look back period. That means that when a person makes a Medicaid application, the state will look back five years for any… Read the rest
Long term care Medicaid coverage has rigid income and resource eligibility requirements as I’ve covered in previous posts like How to Qualify for Medicaid Coverage for Long Term Care.
One exempt asset is a life insurance policy with a cash value less than $1,500. However, for many people facing long term care costs and potential Medicaid applications, the question becomes what to do with life insurance policies with cash values above the exempt amount of $1,500. If you simply cash it in and spend the money, you may be losing a great deal of financial benefit for your beneficiaries. If the cash… Read the rest
Previously, the purchase of an Annuity by a married couple after the date the spouse needing long term care entered a nursing home, hospital or other institution but before the Medicaid eligibility determination date, was treated as an improper transfer if the purchase price was above the amount permitted to be kept by the healthy spouse. New Medicaid rules allow for the purchase of an annuity above the amount customarily permitted to be kept by the healthy spouse during this window of time, as long as it meets Ohio Medicaid Annuity requirements.
Annuities can be a wonderful Medicaid planning… Read the rest