Several myths about Medicaid have taken hold in our public consciousness. Oftentimes, because of these myths, people who seek help from Bellomo & Associates have formed strong opinions about Medicaid before they really understand it. Today, Jeff debunks the myths so that you can make good healthcare decisions while ensuring that your assets are protected.
Key Takeaways
00:55 These are Medicaid MYTHS
- Myth: The county nursing home is your only option
- Myth: The state will take your home and assets
- Myth: You must wait 60 months (5 years) after giving away your assets before you can qualify for Medicaid
- Myth: If you're already in a care facility, it's too late to protect your assets
02:09 Medicaid is a federal program
- Each state interprets the Medicaid law a bit differently
- The Pennsylvania (PA) "Long-Term Care Handbook" is used by caseworkers and is available to the public
05:12 Most nursing homes accept Medicaid
- You are not limited to a county nursing home when using Medicaid
- Sixteen out of 17 nursing homes in York County accept Medicaid
07:23 You can protect your home via smart estate planning
- "Estate recovery" enables the state to make a claim on your assets that are not protected when you die
- In PA, estate recovery will go after any unprotected assets over $2,400 in the probate estate
- One way to protect your home before and after you die is to place the home under joint ownership or remove your name entirely
11:53 "Crisis planning" is estate planning that happens when an individual is already in a nursing home or will soon be placed in a nursing care facility
- It's important to draw down your assets in a way that protects the assets and ensures that you qualify for Medicaid
- A gift is a transfer of assets to another individual for less than fair market value
- Gifting during the "look-back period" of 60 months (5 years) can result in a delay in Medicaid eligibility
- Tax law allows an annual exclusion gift of $16,000/year, but this can carry implications for long-term care eligibility
- You can make unlimited asset transfers to your spouse or set up a Medicaid qualified annuity during the look-back period
- Avoid dealing in cash because, when filing a Medicaid application, it's important to be able to prove what was or was not gifted during the look-back period
20:40 Protecting assets via estate planning is completely legal
- Failing to understand the truth behind the Medicaid myths can be costly
- The law allows estate planning and elder care experts to protect the assets of middle-class people
Links and Resources Mentioned
Pennsylvania Long-Term Care Handbook
http://services.dpw.state.pa.us/oimpolicymanuals/ltc/Long-Term_Care_Handbook.htm
Bellomo & Associates workshops, including Medicaid: https://bellomoassociates.com/workshops/
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