Don’t Burn the Savings—Your Parents’ Long-Term Care Might Be Covered
Aging is inevitable, which means that most families will one day be faced with the daunting task of arranging long-term care for elderly loved ones. At the same time, it’s a harsh reality that the cost of long-term care continues to rise. (If you haven’t looked at recent rates, let’s just say some nursing homes in New York cost more per year than an Ivy League university’s annual tuition—plus room and board). It’s easy to see how long-term care can be a complicated decision that leaves even middle-class families feeling financially vulnerable. But we’re not trying to scare you; rather, it’s the opposite. We want you to take relief in knowing that you very likely have more options than you’d think. For instance, one solution is Medicaid. Which, contrary to popular belief, isn’t just for those living below the poverty line or with disabilities. There’s an option that we refer to as “Middle-Class Medicaid.” Before we dive into that, let’s get clear on what we mean when we talk about long-term care.
What’s considered long-term care (LTC)?
Long-term care (LTC) refers to either medical or lifestyle care that’s expected to be needed on an ongoing basis—not for recovery from illnesses or injuries that are going to heal over time.
LTC can include nursing home care but also includes a lower level of aid. This can be as basic as receiving assistance a few hours each day to help around the house with meals, cleaning, and basic necessities, or it can be part of an assisted-living situation for someone who needs a higher level of care, such as live-in aid to help with medications or getting around. Last, LTC can also mean full-time care at a facility.
Long-term care is a way to ensure you or your loved ones are safe, comfortable, and healthy through the final chapters of what’s hopefully been a long and fulfilling life.
What benefits does Medicaid provide for long-term care?
Now, let’s talk about what Medicaid does.
Medicaid is a healthcare benefit available to individuals and families whose assets—finances, real estate, life insurance, and the like—don’t exceed a certain amount of value.
So, of course, people tend to think “the limit is the limit” and that if they want to qualify for Medicaid, they need to “spend down” their assets.
However, 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, without the need to spend down.
That includes both in-home care and care that is provided in an assisted living facility. For instance, seniors who don’t need full-time care and prefer to continue living in their own homes can qualify for Medicaid coverage of in-home care services, while protecting the home as an asset to leave to their kids one day.
“Middle-Class Medicaid” helps people to protect their assets when figuring out long-term care, through a set of laws that allow you to have Medicaid coverage without burning through hard-earned home equity and savings.
How can I find out if I qualify for Medicaid for long-term care?
For some, there’s plenty of time to figure out a solution for anticipated long-term care. Other times, a sudden illness or incident can create an urgent scenario. Either way, an experienced elder law attorney can help with those first steps in planning.
You’ve probably heard stories, or experienced it yourself, where an aging family member—let’s say, someone’s dad—needs a little help around the house but is hesitant to spend money on his own care because he wants to leave a nice inheritance for his family one day.
While this may sound noble and well-intentioned, it often leads to family members paying on his behalf, or convincing him that it’s not selfish to spend his own money on care, and they’ll do so until they can qualify for Medicaid.
Instead, this is where Middle-Class Medicaid might be an option. There are several ways to protect dad’s assets while preventing the financial hardships that expensive long-term care can cause.
For those in decent health, a Medicaid trust can protect assets like a home and some investments. But when it comes to protecting family and finances, don’t go it alone. Reach out to us if you have questions; an attorney can guide you to find the best options.