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
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
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
With the decision of the First District Court of Appeals in Koenig v. Dungey, Medicaid planning attorneys and their clients were given the confidence to employ annuities in Medicaid planning for married couples.
Community Spouses and the Community Spouse Resource Allowance (CSRA)
U.S. Congress sought to protect married individuals living in the community from financial hardship caused by their spouses’ institutionalization in a nursing-care facility by allowing community spouses to maintain some assets—the Community Spouse Resource Allowance—while still permitting institutionalized… Read the rest