Come in for a free consultation on Medicaid planning. Call (808) 944-1554 to make an appointment.
What is Medicaid Planning and why do I need it?
As you grow older, your health may develop complications and needs – all of which may come at a huge price. Nursing home costs drain the savings of most people, costing on average between $40,000 and $180,000 a year. The money spent on nursing home costs sometimes are taken from the house or inheritance you hoped to leave your children or grandchildren.
That’s where Medicaid comes in. Medicaid is a joint federal and state program that provides health insurance coverage to low-income children, seniors, and people with disabilities. This means, if you are eligible and qualify, Medicaid will pay your nursing home costs.
However, becoming qualified for Medicaid is very complex – the rules change, different rules are used by state, and the application process is lengthy. Medicaid will help pay for nursing home costs, but only after you have spent down your assets and become low-income under Medicaid’s rules. Moreover, there can be severe consequences for being denied by Medicaid that affect the health and comfort of the individual as well as the family.
Planning now, while you are still well and able, can help protect the assets you want to preserve for your spouse or children, or grandchildren. This can be done by setting up trusts or distributing your assets in advance. By doing so, when you do need long-term health care, you may quickly qualify for Medicaid benefits.
Is Medicaid the same thing as Medicare?
No. Although their names are similar and used together sometimes, they are very different programs. Medicare is health insurance for all retirees who receive Social Security Benefits; it is an “entitlement” program. Medicaid, however, is health insurance for low-income, seniors, and people with disabilities, who cannot pay for health care. However, poverty alone does not necessarily qualify someone for Medicaid.
How can I become eligible for Medicaid and what is the “look-back” period?
By transferring your assets ahead of time, before you need expensive health care, you can qualify for Medicaid. However, don’t plan on giving all your stuff away the day before and walking into a nursing home the next day – it could take years of planning in advance to get there. Specifically, Congress established an ineligibility period for Medicaid for those who transfer assets. The ‘look-back’ period for all transfers is 60 months (or 5 years).
The ‘look-back’ period determines if there will be penalties for getting Medicaid, usually depending on the amount transferred. The penalty period could potentially be months or years of waiting before receiving Medicaid benefits, and types of transfers and assets all determine eligibility.
Asset transfers, therefore, should be supervised by a Medicaid Planning attorney. Transfers must be carefully made and take into account an individual’s complete circumstances.
Is Medicaid Planning right for me and my family?
Make an appointment today for a free consultation on how we can help you plan for Medicaid.
Services we Provide for Medicaid Planning:
- Discussion of the health status and financial resources of the individual who is or will apply for Medicaid, and when they hope to be admitted.
- Establish the current and future needs of the individual and their family’s needs.
- Develop a plan to transfer assets. Note – each plan is crafted for each individual’s circumstances, and sometimes a revocable trust, irrevocable trust, or LLC may be needed to effectuate a plan.
- Preparation of all documents for the plan.
- If necessary, provide guidance in filling out Medicaid application forms.