Emergency Medicaid and Nursing Home Planning
Long-Term Care Void
All of these out-of-pocket expenses should be carefully considered when you are creating a retirement budget. However, for most people that have planned ahead with some degree of diligence, they are manageable. There is however one uncovered healthcare related expense that can take a heavy financial toll.The Medicare program will not pay for a stay in a nursing home. It will cover convalescent care after an injury or illness, but it will not assist with nursing home costs, because these facilities provide custodial care.
The Medicaid Solution
They would essentially be receiving their inheritances in advance.Though this approach sounds easy enough on the surface, it takes advance planning to get it just right. In order to receive immediate eligibility, all gift giving must be completed at least 60 months before you submit your application for Medicaid. If you violate this rule, you are penalized, and your eligibility is delayed.The duration of the penalty depends on the amount that you gave away as it compares to the cost of nursing home care in our area. For example, if you divested yourself of enough to pay for three years in a nursing home, your eligibility would be delayed by three years.
Prepaid burial plots and as much as $1,500 set aside for burial or cremation expenses would be permissible.In many if not most cases, a person will enter a nursing home while their spouse is still capable of independent living. When these circumstances exist, there is no home equity limit at all. The healthy spouse can also keep half of the shared countable assets with a limit of just over $100,000. If it is needed to maintain a reasonable standard of living, the independent spouse can also continue to receive income that is brought in by the spouse that will be entering a nursing home.