Medicaid

If your spouse was to become a nursing home patient, how long would your savings last, spending approximately $4000.00 per month? You could pay for long term care insurance; premiums run between $400 and $10,000 per year. You could pay for the nursing care until your assets reached $81,960. Medicaid is a federal program by which states manage funds to provide medical care for people who could otherwise not afford it. There are three eligibility tests:

1. Medical Need. The person must require twenty-four hour nursing care in a "skilled care facility," but not to a degree required by a hospital.
2. Aged or Disabled. You must be over 65, or suffering from some disability, such as Alzheimer's.
3. Financial. This is the most complex, involving assets. A married couple may keep up to $83,960.00 ($81,960.00 for the spouse and $2000 for the applicant spouse.) A single person may have only $2000 in countable assets. (Non-countable assets are the home, (if it is the primary residence), the car, and a burial account. A joint account is 100% countable. The applicant cannot earn more than $1500.00 per month. If the applicant earns even $1.00 more, he/she is ineligible. However, an income trust may be set up-only before application has been made; otherwise, there are penalties. The amount of money over $1500.00 is to be placed in the trust each month, which will then be paid to the nursing home upon acceptance. The applicant is now eligible for Medicaid. In 1988, Congress changed the rules of Medicaid to open the program to seniors; at the same time, more facilities began accepting Medicaid payment in exchange for medical care. Today, the applicant does not have to accept substandard care, but is able to apply at superior rated facilities which now accept Medicaid. How to become eligible for benefits if you are over the asset or income limits? Above all, do not start to give away assets, as this will be investigated. Make an appointment with an Elder Law Attorney to help you make the best decisions in paying for long-term health care.