To the average senior citizen, qualifying for Medicaid may seem very difficult. Many older adults assume that they need to be basically penniless in order to receive benefits, but that is not necessarily true. For those individuals considering senior care or assisted living facilities, this is a vital topic to understand – especially since there are a great number of misconceptions surrounding the issue. Here are the Medicaid facts that you need to know in order to make the best decisions.
5 Misconceptions Regarding Medicaid
Medicaid regulations are complicated, and many seniors aren’t really confident about where to find information. If you are seeking assisted living options and are confused about the rules, the facilities themselves are often a beneficial source of the information you need. Adult residences routinely help seniors in working through the financial choices available to them. There is a lot of information to understand and consider, so here are some of the most frequent misunderstandings regarding Medicaid.
Look-Back and Penalty Periods: When someone applies for benefits, Medicaid assesses a “look-back period”, during which time account statements, property deeds, cash transfers, asset relocations and tax returns are calculated and recorded. The look-back period may be 5 years or more. Medicaid is allocated to those who cannot afford skilled nursing or other professional options. Moving resources around may be considered an attempt to make it seem that an individual cannot afford other options. If resources were reallocated during the look-back period, Medicaid will determine a penalty period during which you can’t receive benefits. However, people often think that the look-back period is the same as the penalty period, which is wrong.
Keeping Spousal Income: Among the top misconceptions is the belief that seniors can’t keep their income if their spouse is a Medicaid beneficiary for their nursing home or skilled nursing costs. While one spouse’s assets will sometimes influence the other spouse’s Medicaid eligibility, income is generally considered on a separate basis.
Advance Planning: Most people don’t think it is necessary to plan in advance to apply for Medicaid, but being proactive may help to save a significant amount of money over the long term. Speaking with an elder law attorney or estate planner can assist with navigating one’s overall financial situation, assessing what can be retained, and strategizing the best plan to allocate your assets. The more proactive seniors are in planning for the last phase of their life, the most secure they will be. Assisted living and long term care can be expensive, and the sooner someone can qualify for Medicaid, the better.
Medicaid Differs From Case to Case: If you speak to 10 people, you’ll likely get 10 different opinions on how Medicaid works. There is a lot of misunderstanding surrounding this topic, especially because every person is treated on a case by case basis, depending on each person’s financial situation. Medicaid also can differ from state to state. A person’s eligibility for benefits is generally dependent on their age, income, required care, owned assets, place of residence and marital status. All of these variables are considered, and together form a comprehensive profile which is varies with every applicant.
Financial Eligibility: In most regions, a person is not allowed to own in excess of $2,000 in countable assets in order to receive Medicaid. However, Medicaid has provided exemptions for certain assets that can be kept without losing their eligibility. While exemptions vary, virutally all states exempt a home if the spouse still lives there. Other assets which may be exempted include business property, home furnishings, personal property, pre-paid funerals and the spouse’s vehicle.
Do you have additional questions about Medicaid and assisted living or memory care? Call the experts at A Banyan Residence in The Villages to learn more about your loved one’s options.
