Medicaid planning is part of a comprehensive estate plan to legally protect the assets of someone who does not qualify for Medicaid because their income deemed to be too high.
It’s possible that there’s no need wait 5 years to qualify for Medicaid by working with an experienced Medicaid planning and Estate planning expert. Medicaid planning is also used by seniors that qualify for Medicaid but are expecting a windfall of money which makes them ineligible for medical benefits.
We run medicaid planning workshops specifically to help deal with the issues of paying for a long term care facility. There are a few ways that Florida residents can pay for long-term medical care which include buying long-term care insurance, applying for Florida medicaid benefits and self funding.
What is Medicaid Planning?
With a growing number of adults in the United States turning 65 years of age it’s more important than ever to plan for long-term medical costs. Medicaid was introduced as a “need-based” program administered by state. It helps pay the cost of long-term medical care if a senior meets a strict eligibility requirement.
Since nursing home costs are rising faster than seniors ability to pay out of pocket, Medicaid planning helps seniors pay for long-term medical care. All without spending down their life savings and selling all of their assets. To meet the income cap for a Medicaid application an estate planning attorney will place a seniors assets inside a Qualified Income Trust to hold the excess assets that would disqualify a senior from receiving Medicaid benefits.
There are currently 3 different Medicaid long-term care programs Florida seniors may be eligible for:
- Institutional / Nursing Home Medicaid
- Home and Community Based Services (HCBS)
- Medicaid for Aged and Disabled (MEDS-AD)
As you can see in the chart above, for 2020 the income limit for an individual to receive Medicaid benefits for nursing home care is $2,394 per month with an asset limit of $2,000.
A Medicaid planning attorney may help you qualify for Medicaid benefits if your income and asset levels are above the eligibility requirements.
When Do You Need Medicaid Planning?
The best time to start planning for long-term care is when you’re healthy and don’t need to think about it. Any gifts or assets accepted by the senior applying for Medicaid will be counted towards Medicaid eligibility within 5 years from the day they apply.
Therefore, it’s important to have a plan in place along with a knowledgeable estate planning attorney that can help you qualify when the time comes, especially if you don’t have long-term care insurance in place. At the end of the day you want options that work for you and planning ahead will put you in a strong position to control your future.
Benefits of Medicaid Planning
Medicaid eligibility is filled with a large amount of difficult hoops to jump through. The rules can change frequently and vary between states. In a time of need the last thing you want is for a loved one to be denied the benefits of great care.
A Medicaid plan helps seniors align their resources while preparing the right documentation. Ensuring that when the times comes to apply for Medicaid benefits there’s a high likelihood of being accepted. A Medicaid planning attorney will handle asset transfers, create trusts and more importantly, convert income producing assets into exempt assets to protect a families hard earned resources.
Free Medicaid Planning Seminar
Every month we host a free medicaid planning seminar to help make sure families are properly protected.
Event Organizer: Julie Jordan