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I am going to qualify for Medicare, and I will retire with significant resources. Why would Medicaid be relevant to me?
This is a very good question. Many people assume that Medicare will take care of all their health care needs when they are old enough to obtain eligibility. However, Medicare does NOT pay for long-term care. Under certain circumstances, Medicaid WILL pay for the long-term care that you would receive in a nursing home. In 2020, the average cost of nursing home care in Arkansas was over $6,000 per month.
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Is it expensive?
A stay in a nursing home is extremely expensive. According to the Genworth Cost of Care Survey 2019, the median cost of a Semi-Private room in an Arkansas nursing home is $5,505 per month. It should be noted that the average length of stay is 12 months and married couples should prepare for two sets of nursing home bills.
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Do a lot of people end up in nursing homes?
The United States Department of Health and Human Services maintains a very useful website called LongTermCare.gov. According to their research, 70 percent of all Americans who live to the age of 65 will need some form of Long Term Services and Support.
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What are the Medicaid asset limits?
The answer is complicated and depends on several factors including the type of Medicaid you are applying for, whether you are Single, Married with both spouses applying, or Married with one spouse applying. Also, there are assets that are “countable” and those that are “exempt.” It is important you work with a Medicaid planning professional to determine what the asset limits are for your circumstances.
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Can you give away assets to qualify for Medicaid, after you find out that you need nursing home care?
Maybe. After application, Medicaid checks past asset transfers (including asset transfers made by one’s spouse), during a specific time frame to ensure no assets were sold for less than fair market value or given away. In Arkansas there is a 60 month (5 year) “look-back period.” If you have disposed of assets, you are not permanently ineligible, but eligibility would be delayed. Medicaid applies a "penalty" factor (based on the cost of nursing home care in Arkansas) to the amount you have disposed of to determine the duration of the penalty. Simply put, if you gave away enough to pay for 12 months of nursing home care, your eligibility for Medicaid would be delayed by one year.
Schedule a Consultation Today!
We are here to help! If you would like to discuss Medicaid planning strategies with a licensed elder law attorney, you can send us a message to request a consultation appointment, and we can be reached by phone at 479-443-0062.
