If you think that your elderly parents might need long-term care in the future, it is important for you to learn about Medicaid so that you can determine whether they might be eligible for it. Medicaid may pay the costs of long-term care in certain situations. The staff at Elder Care Direction can help you to understand Medicaid and whether it might be available to your parents.
What is Medicaid?
Medicaid is a joint program between the federal government and the states. It provides medical coverage to individuals who have few assets and low incomes. Medicaid may be available to pay the costs of long-term care for older adults who qualify.
Who qualifies?
Every state has its own rules for who can qualify for Medicaid. In general, an elderly adult’s income may not exceed between $2,000 to $3,000 per month. There are also asset limits that range from $2,000 to $15,000 that vary by the state. Some assets are exempt so that they aren’t counted towards the asset limits. In many states, elderly adults who have few assets but whose incomes exceed the income limits may still receive benefits. For example, if an elderly adult has a monthly income of $3,500, the state may pay for the difference in the cost of the nursing home between the monthly income and the actual cost.
Your house
Medicaid will not count the value of an elderly adult’s home as long as it remains a home. If a spouse, sibling, or children continue to live in the home once the elderly adult has moved to a nursing home, Medicaid will not count it. However, if the elderly adult moves to a nursing home and a relative is not living in it, the elderly person may have to sell the home to pay for a portion of his or her care.
Spend down and asset protection
By planning ahead, it is possible for your elderly loved one to take steps to protect his or her assets. However, Medicaid has a five-year lookback period. If the assets have been given away or sold for less than their fair market value, the elderly adults may be penalized. This means that they may have to forgo several months of Medicaid and pay out of their pockets the amounts that the assets would have covered.
People may spend down their assets to qualify for Medicaid. To do this, they use their money to purchase assets that are exempt from Medicaid. Examples might include prepaid funeral and burial expenses, cars, and home furnishings.
Learn more with Elder Care Direction
Medicaid can help your elderly loved one to pay for the costs of long-term care. It is important for you to learn about Medicaid and how you might help your loved one to qualify for it when the time comes. To learn more, contact Elder Care Direction today by filling out our contact form.
