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Serving Philadelphia, Delaware County, Montgomery County, Bucks County and Chester County since 1996.
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Medicaid/Asset Protection Planning
The Need for Planning
One of the greatest fears of older Americans is that they may end up in a nursing home.
This not only means a great loss of personal autonomy, but also a tremendous financial price.
Nursing homes can cost over $70,000 a year.
Most people end up paying for nursing home care out of their savings until they run out.
Then they can qualify for Medicaid to pick up the cost.
Careful planning, whether in advance of, or in response to, an unanticipated need for nursing home care, can help protect your estate,
whether for yourself, your spouse or for your children.
Skillful planning using a variety of asset protection techninques can make sure that you qualify for Medicaid as early as legally
possible.
Medicare
Medicare Part A covers up to 100 days of "skilled nursing" care per spell of illness.
However, the definition of "skilled nursing" and the other conditions for obtaining this coverage are quite stringent,
meaning that few nursing home residents receive the full 100 days of coverage.
As a result, Medicare pays for only about 9 percent of nursing home care in the United States.
Medicaid
For all practical purposes, in the United States the only social "insurance" plan for long-term institutional care is Medicaid.
Most people pay out of their own pockets for long-term care until they become eligible for Medicaid.
Although their names are confusingly alike, Medicaid and Medicare are quite different programs.
For one thing, all retirees who receive Social Security benefits also receive Medicare as their health insurance.
Medicare is an "entitlement" program. Medicaid, on the other hand, is a form of welfare — or at least that's how it began.
So to be eligible for Medicaid, you must become "impoverished" under the program's guidelines.
Also, unlike Medicare, which is totally federal, Medicaid is a joint federal-state program.
Each state operates its own Medicaid system, but this system must conform to federal guidelines in order for the state
to receive federal money, which pays for about half the state's Medicaid costs.
The state picks up the rest of the tab.
This complicates matters, since the Medicaid eligibility rules are somewhat different from state to state, and they keep changing.
Both the federal government and most state governments seem to be continually tinkering with the eligibility requirements and
restrictions.
This has most recently occurred with the passage of the Deficit Reduction Act of 2005 which significantly changed rules governing
the treatment of asset transfers and homes of nursing home residents.
The implementation of these changes will proceed state-by-state over the next few years.
To be certain of your rights, consult an elder law attorney.
He or she can guide you through the complicated rules of the different programs and help you plan ahead.
Those who are not in immediate need of long-term care may have the luxury of distributing or protecting their assets in advance.
This way, when they do need long-term care, they will quickly qualify for Medicaid benefits.
Giving general rules for "Medicaid planning" is difficult because every client's case is different.
Some have more savings or income than others. Some are married, others are single.
Some have family support, others do not. Some own their own homes, some rent.
Next Topic - Elder Law Attorneys Help Your Medicaid Planning
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Fax Us: (610) 446-9985 |
Visit our offices:
17 Mifflin Ave. Suite 202
Havertown, PA 19083 |
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