Rubino & Liang - Medicaid Planning

Long-term care costs can be devastating. It is vital that you understand how the system works, or the system will dictate your financial future in the event long-term care is needed at some point. Like most things financial, planning early is the key to avoiding unpleasant surprises.

At the age of 65, every US citizen is entiled to Medicare Part A, and may elect to pay out-of-pocket for the optional Part B. A great numer of people believe that Medicare covers long-term care. Unfortunately, this only partly true. Medicare covers the following:

Nothing for the first 20 days in a hospital or skilled nursing facility
Up to $97 per day for days 21-100
All costs beyond the 100th day in the benefit period. The Benefit Period starts the day you go to the hospital or skilled nursing facility. The Period ends when you havn't received hospital or skilled nursing care for 60 consecutive days. You are resonsible for paying any inpatient hospital deductible for each benefit period. There are no limits as to the number of benefit periods involved.

With home care costs of $6,000. or more, per month, it is easy for a great number of people to deplete their savings and assets in a surprisingly short period of time.

Medicaid would pay nearly all of the expenses, if you can qualify. If you own a home or have liquid assets, you most likely do not qualify. You need to have virtually no assets to qualify.

Though the use of trusts, it may be possible to keep your assets and still qualify for Medicaid. By placing your assets in a revocable trust, you would relinquish ownership (in name only since it is your trust) but not control of your assets. At this point you may qualify for Medicaid. It is even possible to buy and sell the trust's assets -- eventhough long-term care bills have piled-up.

There is one potential drawback to this scenario. Medicaid may not pay out under the scennario described if you have transferred assets to another entity, such as a trust, in the three year period prior to needing long-term care. This period is referred to as the 'lookback period'. It is designed to prevent people from implementing a scenario like this immediately prior to seeking care. So, again, planning early is vital!

We can help you every step of the way. Please call us at 877.630.8787, or Contact us by email .