MEDICAID PLANNING & QUALIFICATION
Medicaid is a federal welfare program that provides medical treatment, including nursing home care, for low income individuals and families.
Medicaid is a "means tested" program. To qualify, a person must have assets (termed "resources") and income below certain limits. In general, an individual's assets must be worth less than $2,000 and their annual income below less than $1,911 for 2008. These and other numbers connected with the Medicaid program change at least annually. A person must also meet a medical qualification for Medicaid, meaning that they must meet standards that indicate they need the care provided to them.
Yes. Among other things, a home, a car, personal effects and clothing, and a modest amount of life insurance are usually considered exempt, meaning they do not count toward the Medicaid resource limitations.
Medicaid is one of the few state or federal programs which provide assistance with nursing home expenses. Given the high cost of nursing home care, Medicaid is the only practical way to pay for nursing home care for many people.
Yes. The spouse of a nursing home resident is allowed (in most instances) to have more assets and income than the spouse who is in the nursing home. In fact, Congress deliberately enacted provisions in the Medicaid law to make it possible for the community spouse to survive financially. The details are complex, so if you need help navigating those tricky waters, please let us know.
After a Medicaid beneficiary dies, the state Medicaid authorities can make a claim against his/her estate to recover the amounts Medicaid has paid for his/her nursing home care. Usually the home (which was probably exempt) is the primary asset that can be subject to estate recovery. Qualifying for Medicaid and avoiding estate recovery after death is often very difficult to accomplish. We can help.
Yes. No one feels it is morally wrong to plan to take a tax deduction to reduce one's income tax liability. Planning to become eligible for Medicaid in a legal manner to reduce the expense of nursing home care is no different. In fact, Congress deliberately enacted provisions in the Medicaid law to allow many middle class people to qualify for Medicaid who would otherwise be excluded. Obviously, Congress intended that these provisions would be used.
This website is designed for general information only and should not be construed to be legal advice or the formation of a lawyer/client relationship. You should consult a qualified attorney for individual advice regarding your own situation.