Big Beautiful Bill Cuts Are Coming: Now’s the Time to Protect Your Assets
Did you know that Medicaid covers 6.9 million New Yorkers, or roughly 35 percent of the state? Well, for now it does. That number is slated to change now that the “One Big Beautiful Bill” (OBBB) has been made into law, which will slash a whopping $13B in cuts to state Medicaid funding. You might have seen our other posts that talk about how Medicaid is not just a program for low-income individuals, but also a useful tool to help middle-class families protect their assets using a trust or other strategies. We’re not yet sure how this could change once the funding cuts take place, however, it’s important to remember that although big changes are underway in New York, with the guidance of an experienced lawyer, you have the opportunity to stay ahead of the game.
What does the OBBB mean for New York?
It’s a stark fact: The amount of funding that’s being cut is huge, even for the weighty wallet of New York State. That means, NY has no choice but to change its Medicaid program after these cuts go into effect next year. But there are still a lot of details to iron out.
For example, right now, we know the laws, benefits, and how to proactively set up assets in a Medicaid Trust. And NY is still one of the best states for Middle-Class Medicaid benefits. What we refer to as Middle-Class Medicaid encompasses a set of laws that allow people to protect their home, savings & investments, and other assets so that you maintain control of them if you or a loved one need Medicaid for long-term care in the future.
That means: Now is the time to act.
How can a Medicaid Trust still benefit middle class families?
Medicaid is a benefit for individuals and families whose assets—finances, real estate, life insurance, and the like—don’t exceed a certain amount of value. But this fact leads people to wrongly assume that in order to qualify for Medicaid to cover anticipated long-term care down the line, they need to spend-down hard-earned savings.
In actuality, when planned out correctly with the assistance of an experienced law firm, Medicaid can cover nearly any long-term care needs that you or a loved one may require, while your assets remain protected in a trust, without the need to spend down.
Again, this is a valuable option for those looking to maintain control of assets within the current set of laws.
What’s the best course of action to take?
Don’t wait until 2026 to see what happens. If this sounds like the right option for you and your family, let’s have a chat.
There are just a few months left until 2026, and Medicaid has not been sliced this much in a very long time; the impacts are hard to predict. What you can control: working with an experienced pro who can help you make a plan now, and will be in your corner to deal with any curveballs when the changes go into effect later.
Reach out to schedule a consultation today.