Long Term Care Planning and the Myths about Medicaid

Many of our clients should consider purchasing long term care insurance as a means of funding the cost of their long term health care needs. The catastrophic cost of long term care is one of the greatest threats to the security of our older adult clients. Less than three percent of the long term health care needs of our clients will be paid through Medicare and supplemental health care insurance. Long term health care insurance can offer coverage not only for the high costs of nursing home care but also for the costs of being cared for in the home or in an assisted living facility. The key is to be a good consumer and ask the right questions about the coverage that is right for you. The Indiana Department of Insurance is a good starting point for consumers. You can contact the Department’s Consumer Services Division at 1-800-622-4461 (toll-free) with your questions about long term care or health insurance. The State Health Insurance Program (SHIP) offers free counseling and informational brochures to consumers about their insurance needs. You can call SHIP at 1-800-452-4800 (317-233-3475 for Marion County) for information or to see if the Program has a counselor in your area of the state. You can also visit the SHIP web site at www.in.gov/idoi/2399.htm or send an email to nfrazee@idoi.in.gov.

Unfortunately, many of our clients approach us when it is too late to purchase long term care insurance. Medicaid may then be an alternative.

Medicaid is a federal program which is independently administered in each state.

Medicaid is quite different from Medicare, which is an insurance program providing payment for medical needs for persons 65 and over and for certain disabled persons.

Medicaid is one of the most difficult and puzzling laws in this country, complicated by the fact that each state has its own interpretation of what the federal law means.

The average cost of a year's stay in an Indiana long term care facility ranges from $42,000 to $45,000, making it difficult or impossible for most persons to pay for their care.

Most people who need care for extended periods will eventually deplete their assets and be unable to pay the costs of their care.

Medicaid is of great importance to older adults because the cost of long-term care for such illnesses as Alzheimer's disease or paralysis caused by a stroke is not covered by Medicare. With our expertise in Medicaid law, we can assist you in planning for the expenses of long term care as well as planning for the protection of resources for you and your family.

1. Medicaid will take my home.

2. If I'm already in a nursing home, it's too late to plan for Medicaid.

3. All of my property will be turned over to the nursing home or Medicaid.

4. I will lose my Social Security or pension income if I go on the Medicaid program.

5. If I'm in a nursing home, I can't provide for my spouse or for my disabled or minor children.

6. If my spouse is in a nursing home, Medicaid will make me split our resources 50/50.

7. My income alone is fairly modest. If my spouse goes into a nursing home, I won’t have enough income on which to live.

8. I can't own any assets of value and qualify for Medicaid.

9. I can't own any real estate and qualify for Medicaid.

10. Medicaid will not pay for my care if I want to remain in my own home.

11. If I have received Medicaid benefits during my lifetime, Medicaid will take all of my estate when I die.

12. I cannot pass the family farm onto my children, even if I have been actively involved in the operation of the business.

 

With proper legal planning, the Medicaid applicant has many options available to preserve personal property and real estate for his or her future needs or for the protection of his or her family. The twelve myths listed above illustrate the many misconceptions people have about Medicaid. Medicaid planning can provide a favorable solution to all of these concerns.

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