There is an asset threshold for Medicaid eligibility.
As you get older, you will likely need long-term care.
This can be expensive.
It could cost you upwards of $100,000 a year.
What if there is no way you can afford this?
According to a recent nj.com article titled “Spending assets before Medicaid kicks in,” you have options.
Depending on the coverage you select, you may still be paying out-of-pocket from your own assets.
If you cannot qualify for long-term care insurance, Medicaid could be an option for you.
There is a catch.
What is it?
Your non-exempt assets must be valued at less than $2,000 in Kansas or $999.99 in Missouri, if you are single.
This is a pretty small number for calculating everything in your investments, bank accounts, real property, and other assets.
Does this include your house?
If you or your spouse live in the home, then no.
However, Medicaid will have a lien on your house and will be able to collect on it when you die if your spouse is no longer living there.
How does one get to an asset value of under $2,000 or $999.99?
You will need to spend down your assets.
You should know that how and when you spend down affects eligibility.
Medicaid has a five-year “look back” rule.
Qualifying for Medicaid does not mean you will receive a bed in the facility of your choice.
Facilities only have a specific number of beds reserved for Medicaid patients.
This means you could be put on a waiting list or will have to find an alternate facility.
Qualifying for Medicaid is not simple.
You need to understand what assets are exempt and non-exempt when trying to qualify.
If you require this service, work with an experienced elder law attorney.
He or she will be able to walk you through the process.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: nj.com (November 6, 2017) “Spending assets before Medicaid kicks in”