A lot of individuals want to plan and set up their estates for Medicaid eligibility. This reduces their fear of ending up in a nursing home because getting Medicaid benefits can save an average of eighty-five thousand to one hundred and fifty thousand dollars, which is the annual cost for nursing home care.
There are still people who pay for these costs from their own savings. This can result in the exhaustion of all savings and assets. A person can be eligible for Medicaid benefits only after their assets have been used up. Although when they pay for the nursing home with their own money, they can choose where to live and eliminate having to deal with state bureaucracy. The disadvantage is the large costs and this is where planning is so crucial.
Asset protection can be done by the use of long-term care insurance policy, but it is not the best way to do it. It is important to take proper planning steps to make sure an individual is receiving all of the Medicaid benefits they are entitled to as early as possible.
Medicaid benefits are the only way to obtain long-term medical care in the United States. A lot of people are required to pay nursing home costs out of their own savings until they have reached the financial eligibility set by state Medicaid requirements. Many people confuse Medicare with Medicaid. Medicare is health insurance granted to those who receive Social Security. It is a privilege program that is similar to PPO’s and HMO’s like Blue Cross Blue Shield and United Healthcare. Medicaid is a form of welfare and is largely based on income. To be eligible for Medicaid benefits, one must not earn more than the specified amount in a one month period set by different states. In most states, the maximum income level is $2,300 per month.
Medicaid is managed by individual state governments, but is funded by the federal government. Most states rules and policies are very similar to each other, but they differ in some areas. Each state has its own program for Medicaid, often called by different names. The state operates the program, but these programs must correspond to specific federal guidelines. Rules and regulations differ in each state, so the best thing to do is to contact the state government to find out what the eligibility rules are and what Medicaid benefits are offered through the program. These programs also change frequently so it is important to be up to date on information about them.
One way people prepare for Medicaid is by distributing their assets before they require any benefits. Individuals are likely to qualify for the program faster than if they had to spend down their savings and deplete assets. It is almost impossible to know when someone will need long-term care, but planning for this is a very important thing to do. An asset protection plan is one way to go about planning. This is when assets are reallocated and money is transferred, making an individual eligible for the program when the time comes.