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Your Financial Stability Could Be At Risk

Long-term care is defined as a stay of 90 days or longer in a nursing home, convalescent care facility, or similar facility. Long-term care goes beyond medical care and nursing care to include all the assistance you could need if you ever have a chronic illness or disability that leaves you unable to care for yourself over an extended period of time.

The annual cost of nursing home care averages $54,000. These costs can be expected to rise. Combine this with the average nursing home stay of 30 or more months, and it's easy to see how high nursing home costs and a lengthy stay could rapidly deplete your assets.

Medicaid allows you to spend down your assets on any item for your own benefit. In some states, you can reduce debts - buy clothing, a television, a wheelchair, or a walker - put a new roof on your home, or buy a car for your own use.

You may also convert countable assets to non- countable assets. For instance, you may buy a burial plot, create a prepaid burial fund, purchase an annuity, remodel your home, buy new furniture or pay off your mortgage. You may also be able to obtain a fair hearing appeal to qualify for Medicaid without spending down assets.

In many cases, people may end up disposing of what they've worked hard to accumulate, spending frivolously or leaving a spouse or family member with relatively little savings on which to live. By learning what assets are counted for eligibility in your state and examining your state's Medicaid eligibility requirements and other long-term care funding options, you can make informed choices that can help preserve your assets and protect your family's future.

When you apply for benefits your assets will be reviewed to determine if you're eligible. Each state has different restrictions.

Income Cap

Some states set monthly income limits, or " Caps," for persons entering nursing homes. Texas is an income-cap state and if your gross monthly income exceeds the established limits, you will not qualify for Medicaid even if all assets are depleted.

Spend Down

 

Most state have spend down provisions, and eligibility is primarily dependent on the amount of your assets. Assets are counted jointly for married couples, and each state has stringent restrictions on the amount of countable assets you can own. When you apply for Medicaid, your assets are classified as either countable or non-countable.

 

	Countable Assets - Considered in determining eligibility.
	Non-Countable Assets - Not considered in determining eligibility. Non-countable assets are some times referred to as exempt.

What Types Of Assets Are Non-Countable?

	Principal residence with home equity restrictions.
	Individuals - The principal residence is exempt as long as the equity value is within limits and you specify on your Medicaid application that you intend to return home when your health improves. Unfortunately the Medicaid Estate Recovery Program may effect your home at death.
	Married couples - The principal residence is not counted if your spouse still lives there and the home equity is within the limits.
	One car of any value for a married couple.
	Household goods and personal effects of any value.
	Prepaid burial plots (irrevocable).
	All whole life insurance policies with a total cash value of $1,500 or less.

Elder Advisory Services is the Medicaid Planning services of Peter G. Milne, a consulting elder law firm that assists in the Medical Assistance Program, commonly referred to as Medicaid, as well as comprehensive estate and tax planning and wealth preservation.

Since 1995 we have successfully provided individualized services to seniors and their family members and assistance in understanding options to meet their needs. We particularly focus our attention in estate preservation planning and assessing your current situation in light of the established Medicaid guidelines.

Contact Richard Hicks today at (903) 526-4600 or complete our Request for Information form below. Ask how we may be able to help your family as you plan for their (or your) long term care needs.