Medicaid Planning & Applications
How will you pay for long term care costs?
Long term care costs can deplete the assets which you have worked hard
to earn and save. You can create a plan using one or more of the following
ways, which will help to preserve your life savings while providing you
with the care you need.
- Private Pay: You will need substantial resources in order to private
pay for your care. Nursing homes can cost between $8,000.00 to $12,000.00
per month in New York. The average is about $10,000.00 per month.
- Long Term Care Insurance: You will need substantial resources and
income to pay the insurance premiums. However, the benefits received
may be considerable.
- Medicare: Most individuals aged 65 and older are eligible for Medicare,
but not much coverage is provided.
- Medicaid: This is a joint federal & state program, which can provide
coverage for most if not all of your long term care costs.
However, there are several eligibility requirements you must meet, including
limits on the amount of assets and income you can possess. If married,
the assets and income of your spouse will also be considered.
Medicaid Eligibility
In order to qualify for Medicaid, you must:
- Be at least 65 years of age or under age 21, blind or disabled.
- Have no more than $3,850.00 in assets in your name.
- Retain no more than $662.00 per month of income if living at home,
or $50.00 per month if living in a nursing home.
Assets
You may possess up to $3,850.00 in assets in your name. However, there
are certain assets which Medicaid will not consider in calculating your
total assets. Any excess resources need to be spent down or transferred
prior to Medicaid qualification.
Transfer Penalty
If you transfer assets for less than fair market value, you may incur
a period of ineligibility based on your transfers.
Income
If you are single and living at home, you are allowed to keep up to $662.00
of income per month. If you are residing in a nursing home, you are only
allowed to keep $50.00 of income per month. Any excess income must be
used to pay for your long term care or paid back to Medicaid.
Look-Back Period
When you apply for Medicaid, the local agency will review all financial
statements and transactions during a specified"look-back"period.
Generally, the look back period is 36 months. However, if a trust has
been executed, the look back period is 60 months.
Medicaid law and eligibility rules are complex. Please consult a qualified
professional to discuss the appropriate Medicaid plan for
you.
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