Medicare and Medicaid are two government programs that many Americans find confusing due to their similar names and overlapping benefits. While both programs can help pay for long-term care in a skilled nursing home, there are significant differences in coverage duration and eligibility requirements. In this blog post, we will explore the distinctions between Medicare and Medicaid, the challenges they present for individuals and married couples, and the importance of working with a Medicaid or Medicare planning attorney to protect your hard-earned assets and ensure long-term care coverage.
Understanding Medicare and Medicaid
Medicare is a health insurance program for individuals aged 65 or older, and for certain younger people with disabilities. While Medicare can provide coverage for skilled nursing care, it typically only covers the costs for up to the first 100 days. Medicaid, on the other hand, is a needs-based program that can pay for long-term nursing home care for eligible individuals. However, to qualify for Medicaid, a person must be considered "indigent," meaning they cannot possess more than a certain amount of financial resources.
The Challenge of Protecting Assets
Many individuals and married couples face the challenge of preserving their hard-earned nest egg while also ensuring adequate long-term care coverage. Nursing home expenses can range from $11,000 to $13,500 per month or more, quickly depleting savings if proper planning is not in place. Unfortunately, many Americans do not plan for this possibility, and Medicaid rules may require them to "spend down" their assets until they are nearly gone before qualifying for coverage.
For an unmarried individual, the maximum asset allowance is just $2,500. Married couples may be able to preserve 50% of their assets, up to a maximum of $148,620. Medicaid's 5-year "lookback period" can catch people off guard, resulting in significant assets being consumed for a spouse's care that could otherwise have been preserved through proper and timely estate planning.
The Importance of a Medicaid Planning Attorney
Working with a Medicaid Planning attorney can be a valuable investment in protecting your assets and ensuring long-term care coverage. These specialized attorneys can help you navigate the complex rules and regulations surrounding Medicare and Medicaid, developing a personalized plan to preserve your assets while still ensuring access to the care you or your spouse may need.
An experienced Medicaid Planning attorney can help you:
Conclusion
Planning for long-term care and preserving your assets is a crucial aspect of estate planning that should not be overlooked. By working with a knowledgeable Medicaid Planning attorney, you can protect your financial future and ensure that you and your spouse have access to the care you need when you need it. Reach out to our team of experienced attorneys in Maryland today to start planning for a secure tomorrow.
