For many in need of long-term care and assistance, the cost of a nursing home or other facility can be exuberant. Unfortunately, many insurance companies do not cover the cost, meaning those in need must rely on Medicaid. However, this coverage has incredibly strict requirements, so it’s imperative to understand the eligibility requirements and what you can do to begin planning for the future. This blog explores what you must know and why connecting with a Medina County, Ohio Medicaid planning attorney is critical for your future.
What Does Medicaid Planning Mean, and Why Is It Important?
Many people fail to realize that Medicaid and Medicare differ considerably. Generally, those who retire will qualify for Medicare, which acts as insurance to cover doctor’s visits, medication, and even things like vitamins. However, the one thing Medicare does not cover is long-term care. As such, if someone needs to be placed in a nursing home or other senior care facility, Medicare will not cover the cost.
Medicaid, on the other hand, will cover the cost of long-term care. However, qualifying for Medicaid is not something many people do easily, thus a need to plan in case you require Medicaid. This is a need-based process, so only those who have less than $2,000 in assets will qualify for this program.
In order to be eligible, many must “spend down” their assets. Essentially this means you must put funds towards eligible expenses to help reduce your assets so you can qualify for coverage. This includes gifting assets to family, transferring titles to beneficiaries, paying off debts, planning for your funeral, and paying for home modifications.
Another option is to create a Qualified Income Trust, as you can place the assets that put you over the eligibility amount into the Trust. In addition, any income you earn will go directly to the Trust, which, upon approval for Medicaid, will be used to cover the cost before the program covers the rest.
How Can an Attorney Help Me With This Process?
Unfortunately, Medicaid planning is incredibly complex and requires the assistance of an experienced attorney to ensure you can restructure your assets to qualify for Medicaid without putting your estate plan and beneficiaries at risk.
It’s important to begin planning for the future early, as you’ll find that Medicaid has a five-year “look back” period, which essentially means that any assets transferred during this window will be counted toward your eligibility.
Planning for the future can be overwhelming, especially when you must meet strict guidelines like the ones for Medicaid eligibility. As such, it’s imperative to connect with the team at Krause Law. We can help you explore your legal options for these matters so you can make the decision that’s best for you and your family. Connect with us today to learn how we can help you achieve peace of mind for the future.
