Medicare/Medicaid-Planning

Estate Planning and Medicaid Eligibility

Determining Medicaid eligibility is a task that causes many people a great deal of concern. Some do not want to depend upon the government for any support-feeling like it is a handout.. Other people are willing to spend their entire net worth down to zero. There is concern about what are and what are not approved Medicare or Medicaid expenses. As with most areas related to estate planning, there are no one-size-fits-all answers.

Asset protection, the rising cost of nursing home bills, and changing Medicare rules and Medicaid laws make it necessary for an elderly individual or retired couple to not only consider all of their options, but also review them on a periodic basis as their situation and Medicare/Medicaid rules change. Here are some specific points to take into consideration as you make your decisions:

• Nursing homes in the Northeastern region of New York State> cost approximately $7,500 to $10,000 per month. How will this be funded? For how long?

• Medicaid does not reimburse the nursing home at the same rate as the private pay resident. In other words, the private pay residents are subsidizing the Medicaid residents.

• If you apply for Medicaid, having some assets available to be spent down on private pay for several months may make a difference in obtaining admission to a nursing home of your choice.

• Once you qualify for Medicaid, the government can still take your house (as reimbursement for Medicaid that has already been paid) if your community spouse dies while you are still in the nursing home.

• If an individual gives away all of their assets to qualify for Medicaid, their financial independence (to buy a car, go out to dinner) is compromised. Fear is not a good reason to give up your financial independence.

There are many ways to organize your finances and still qualify for Medicaid. Our law firm has experience in these matters and can explain to you the 36 month look back rule for computing a waiting or penalty period for eligibility for gifts made outright to someone other than a spouse, and how to use irrevocable living trusts to preserve family assets during the qualification process. Our estate planning lawyers help you make your own decisions by giving you information and legal advice that is clear, relevant and understandable.

If you would like to speak about Medicaid eligibility or discuss any legal issue with one of our attorneys, we urge you to call or contact our Latham, New York law office to schedule an appointment.