5 FAQs about Medicaid Planning
Medicaid planning requires confrontation with uncomfortable realities. It’s scary to imagine that you might not be able to care for yourself one day. The solution to this fear is planning. By taking stock of your challenges, you can approach the next phase of your life with courage. These FAQs can give you clarity to that end.
What is Medicaid?
It’s a massive government health care program—a joint project between the federal government and the states that serves over 70 million Americans.
How costly is end of life care?
Short answer: it can get quite expensive!
According to Genworth’s 2017 Cost of Care Survey, the median price of a nursing home room increased 4.44% between 2016 and 2017. The annual price tag is now a daunting $85,775. The median rate of an assisted living facility, meanwhile, stands at $3,750 a month. And the national median rate for a home health aide is $22 an hour. The cost of care continues to increase at a rate that outpaces inflation.
Why is it important to plan for Medicaid?
On the surface, it seems like the high costs of care shouldn’t be a problem for you as an individual. After all, the government offers this big safety net. So why worry?
One reason is that in order to qualify for Medicaid, you must demonstrate that your means are limited. Otherwise, you’ll be forced to spend down assets you’ve amassed over a lifetime before being getting to access funds. If you plan poorly, your end of life care costs can burn through everything you had hoped to leave for your children.
What’s an example of how bad planning can boomerang?
Consider this cautionary take. A man made the critical error of giving his girlfriend partial control of his estate. Unbeknownst to him, she transferred most of his assets to herself. When he died, he had nothing to give his children.
Transferring assets to another person might seem like an easy way to get around the system, but it can lead to disaster. For instance, if you violate Medicaid asset transfer rules, you could be rendered ineligible.
How can you get your Medicaid questions answered ASAP?
Our team is holding a private seminar in Little Rock on April 24th. We will teach how to make sense of Medicaid and plan intelligently. Please join us! Details below.
We’d also love to connect with you personally to talk through your options. Contact us to schedule a private consultation, 501-221-7776 WilsonMillerLaw.com.
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