Issue 18.10
There is no question people are living longer as a result of medical advances in the health care industry. National statistics report that 75% of people 65 years of age will require long-term care within their lifetime. At a national average nursing home cost of $74,806 per year and an average stay of 2.44 years, many families faced with the difficult decision of placing an elderly parent or spouse into a nursing home are equally overwhelmed about how to pay for nursing home care.
Your options are: pay from life’s savings; buy a LTC insurance policy; get family member’s to pitch in; or have Medicaid pay. Most people don’t consider the Medicaid option because of the many myths and misinformation about it. Most think they have to be poor, destitute, or on welfare in order to qualify –or first go broke self-paying before they can get Medicaid. I assure you that you don’t have to be poor, destitute or broke to qualify for Medicaid coverage. But you do need to do some planning.
The goal of Medicaid planning is to qualify for Medicaid while keeping as many assets as possible for the spouse living at home, and to pass on to your heirs. Determining eligibility and completing an application is complicated and usually cumbersome for the layperson to understand (like a 5 year tax audit). However, qualifying for Medicaid benefits is available to far more individuals than is commonly believed – if you know how to qualify (Medicaid case workers are prohibited by Utah law from advising you on how to reduce income to qualify for Medicaid).
Medicaid planning are of two types: “Pre-planning” which is a legal approach we take when you might need to enter a nursing home some time in the future and want to take the planning steps now, so your affairs will be in order to immediately qualify for Medicaid when the times comes. And, “Crisis Planning”, which we pursue when you are about to become a resident of a nursing home, or are already in a nursing home and self-paying. In both situations there are substantial planning strategies to protect your assets and qualify for Medicaid.
Medicaid can be an option. Call me at 435-673-9180 for a free consultation to see if it might be the answer for you or a loved one.
Don’t fall for these Myth’s
1. Myth: I have to give away everything I own to get Medicaid.
2. Myth: I can give away $13,000 per year under Medicaid rules without penalty.
3. Myth: If my income exceeds a certain amount, I will not be eligible for Medicaid.
4. Myth: If my spouse goes into a Nursing home, all of his income must be used to pay the bill.
5. Myth: If I have a home, I must sell it first.