If you or a loved one needs a long-term healthcare plan, you may have questions regarding Medicaid.
While long term care insurance is generally the best option when it comes to healthcare planning, it is not always a feasible financial option. In these cases, it is usually best to plan for Medicaid to ensure a continuance of care.
What is Medicaid?
According to FindLaw, Medicaid is a federal program that each state manages separately. Medicaid is available to low-income individuals of any age and pays for general medical care, as well as nursing homes and other long-term skilled nursing facilities.
In order to qualify for Medicaid, you must be a citizen of the state in which you are applying. Additionally, your assets and income may not exceed the Medicaid limits. For these reasons, it is vital to plan accordingly if you want to qualify for Medicaid.
How can I plan for Medicaid?
A common strategy to qualify for Medicaid is to transfer assets to another party. Unfortunately, this strategy can backfire. If Medicaid determines that you gave gifts to others during the five-year period before applying for Medicaid, you may be ineligible for a period of time. This can be devastating when you need long term care and cannot afford private insurance.
The best course of action is to plan for Medicaid before you need it. Working with someone who can help you understand asset protection and planning early on can help you avoid periods of ineligibility. Additionally, you can better protect your assets by establishing certain types of trusts.