Medicaid was mentioned previously on the show, but this time we take an in-depth look at Medicaid as it relates to estate planning and elder law. This episode runs through the difference between Medicare and Medicaid, common misconceptions, how Medicaid is applied, how to qualify for Medicaid, how to protect assets while not losing Medicaid benefits, the concept of gifts, and more.
Hopefully, this episode will give you a better understanding of Medicaid and its role in estate planning and elder law. Stay tuned for a lot more educational content that is to come!
Key Takeaways
Takeaway 1: The Medicare Myth 01:40
- We always hear, "Don't worry, I have really good health insurance and the insurance is going to take care of everything." That's a myth. When you're dealing with health insurance and it comes to long-term care, the health insurance is not going to pay for it.
Takeaway 2: Medicaid in nursing homes 05:14
- There are varying opinions surrounding Medicaid. A lot of people have a bad perception of county homes. There's only one county home in York County, where the quality depends on who is staffing it. York's county home has received high ratings in recent years, but there are many options to avoid the county home.
Takeaway 3: It's not too late 8:37
- We always hear it's too late to get aid once somebody is in the nursing home, but that is wrong.
- Planning 5 years ahead of time is great, pre-planning is very helpful because it plans trusts and protects assets ahead of time, but we're not in a perfect world. Not everyone will pre-plan, so we're prepared to help people who didn't do that.
Takeaway 4: The 3-prong test 10:15
- Medicaid is a 3-prong test:
- Where we come in is assisting you in getting 5 years of statements of bank accounts, every asset, everything that you have to be able to put it all together in a box.
- The lookback period is the 60 months prior to the day we file a Medicaid application.
Takeaway 5: Gifts 13:27
- Gifting can be our Achilles' heel. There are too many people who turn to online advice from people who are not professionals specializing in Medicaid, asset protection, or elder law. There are no warnings about the 5-year lookback period and the consequences if you go into long-term care.
Takeaway 6: Being financially eligible 19:26
- You can exempt a home, but the problem is when you exempt a home with the intent to return home, when you die it's still in your name alone. The state of Pennsylvania will have the right to estate recovery.
- When we do a plan, we're looking to protect as much as we can and do it in a way that there will not be any sort of recovery. For a single individual, we would probably sell the house, take the money and protect 50% of it.
- You need to seek counsel on this matter. Go to a certified elder law attorney in your area who can help you figure out exactly what you need. We would love to help you if you're nearby and in need of asset protection. Don't be afraid to reach out.
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