Become eligible for Medicaid from prudent Medicaid planning and asset protection strategies
Eligibility for Medicaid
Planning and properly setting up your estate for Medicaid eligibility can reduce your fear of ending up in a nursing home because meeting Medicaid requirements can save on average a eighty-five thousand to one hundred and fifty thousand dollars. Typically, the annual cost for nursing home care ranges between $85,000 and $150,000. This placement and change in life means many things. It causes the loss of personal autonomy and can come with a hefty financial obligation.
Many people pay for these costs from their personal savings. This results in the depletion of all savings and assets. Who is eligible for Medicaid? Only after your assets have been depleted does one get eligibility for Medicaid benefits. There is an advantage to paying for the nursing home with your own money. It allows you to choose where to live and it can eliminate having to deal with state bureaucracy. The disadvantage is the huge expense. This is why careful planning is so important.
Medicaid asset protection for your estate is possible. A long-term care insurance policy could possibly help achieve this, but it not the best way to protect your assets. Whether you are receiving Medicaid or Medicare benefits, it is important to take proper planning steps to make sure you are receiving all of the benefits you are entitled to as early as possible.
Medicare Part A
Medicare Part A is something that every aging person should be familiar with. This part of Medicare will cover up to 100 days in a skilled nursing facility per illness. The catch is the actual definition of a skilled nursing facility. In fact, due to the strict guidelines and varying definitions, very few people are actually entitled to these 100 days. The end result is that Medicare ends up only paying for 9% of all nursing home care in the country.
Medicaid – What is it?
Medicaid is the only way to obtain long-term medical care in the United States. Most people are required to pay nursing home costs out of their own savings until they have reached the financial eligibility for Medicaid. Medicare and Medicaid are often confused. It is important to understand that these are two completely different programs with different benefits. Medicare is the health insurance granted to those who receive Social Security. It is an entitlement program that could be compared to PPO’s and HMO’s like Blue Cross Blue Shield and United Healthcare. Medicaid is a form of welfare and is largely based on income. To be eligible for Medicaid, you must not earn more than the specified amount in a one month period – in most states the absolute maximum income level is $2,300 per month.
Medicaid is administrated by individual state governments, but is reimbursed by the federal government and thus most states rules are very similar but different. Each state has its own form of Medicaid, often called by different names. The state operates the program, but all programs must conform to specific federal guidelines. This means that Medicaid rules and regulations differ in each state, which can cause a lot of confusion. The best thing to do is contact your state to find out exactly what the eligibility rules are and what benefits are offered through the program. These programs change often so it is important to always have the most up to date information available.
Using Medicaid Asset Protection for Eligibility
One way people plan for Medicaid is by distributing their assets before they require the benefits from Medicaid. When this is done, individuals will be able to qualify for Medicaid faster than if they had to spend down their savings and deplete assets. This is why planning for Medicaid can be difficult. It is nearly impossible to know when you will need long-term care. However, planning for this care is one of the most important things to do. An asset protection plan is one way to go about planning. These plans will reallocate your assets and transfer money, making you eligible for Medicaid when the time comes.
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