What is Medicaid? More than likely you have heard of Medicaid, considering it has been part of the national political debate for some time. But what exactly does Medicaid mean to you and your elderly loved ones?
If you have elderly parents, it is high time to learn about Medicaid and how it works.
Fortunately, a recent Forbes article is a good place to start. The article is aptly titled “Medicaid And Your Parents: The Basics.” Essentially, Medicaid is a program run jointly by the federal government and each respective state government. Think of it as government insurance for, among other things, late-in-life medical care like home care or nursing home care when the one needing care has too limited financial resources.
Medicaid is “means-tested.” Consequently, having too great an income or too much in assets will disqualify a Medicaid applicant and create a legal hurdle to receiving benefits. In addition, having “assets” is not the same as having the money to pay for care.
For those with assets exceeding the Medicaid limits, “giving” assets away will only disqualify them from Medicaid assistance if the transfers violate the “look back” period designed to keep them from gaming the system. Of course, an elderly individual might have had innocent intentions when they made a disqualifying gift a few years ago and the need for Medicaid was unforeseen. Regardless, such transfers are a red flag when it comes to Medicaid qualification.
Each state is subtly different in its approach, but these are very real rules and they require careful thought and timing. Otherwise, it is easy to run afoul of the rules now and be disqualified from care later. You owe it to your elderly loved ones to start planning for a worst case scenario without delay.
To discover your options on Medicaid Planning join us for a FREE Medicaid Lunch & Learn! We’ll go over the basic requirements of Medicaid, exempt assets and transfers, rules of married couples and much more, join us on Wednesday, August 23rd in Greenwood. Click here or call 317-863-2030 to reserve your seat today!