In this article, you can learn about:
- Worries people have about Medicaid
- What Medicaid covers
- The differences between Medicare and Medicaid
- And more…
What Are Some Of The Most Common Worries People Have Regarding Medicaid Planning?
People generally go to the internet with questions to gain some knowledge. This often leads to misconceptions causing worries among people. Some of the biggest worries are:
- There is a five-year lookback period if I give my property away.
- Am I allowed to give my property away?
- Am I going to go broke in the nursing home because it’s expensive and you have to spend all your money before Medicaid will start covering you?
- Am I going to run out of money because of nursing home care?
While the internet can offer a lot of insight into these questions, the best way to find answers is to go straight to an expert. A Medicaid planning attorney can help you find what you need (and give you counsel tailored directly to your situation) before you make any decisions.
What Stages Of Life Are People In When They Come To Set Up Medicaid Planning?
People are generally over 70 years old when they start Medicaid planning. They start to have some health issues or some other difficulties, or they have a friend that it happened to, so it gets them to think about Medicaid. Most people in their 60s are not overly concerned about Medicaid planning just yet. However, it’s never too soon to get started.
What Medicaid Is And Covers?
Medicaid is a joint state and federal program that provides health and assistance for nursing home costs. In Louisiana, the average nursing home costs approximately $5,500 a month. This causes people to worry because with this cost they will have to spend their life savings and are not able to leave anything to their kids. Medicaid is a great program, but to qualify, you must qualify financially. You must meet the following criteria to qualify financially:
- Have a certain amount of assets
- Your monthly income needs to be less than the cost of the nursing home
An example would be a single person would be allowed to have up to $2,000 of countable assets and everything else would have to be spent before Medicaid would start paying for their nursing home. If this person has an IRA of $80,000, the nursing home requires them to pay out of their IRA until it is empty.
At this time, you can file a Medicaid application to pay for your nursing home care. Medicaid is used as a safety net, but by the time a person needs Medicaid in a nursing home, they have nothing left. This is not a great place to be financially. The reason to plan is to try to preserve a person’s assets outside their estate that they can still have access to indirectly and won’t count for Medicaid.
How Much Does Out Of Pocket Nursing Home Care Cost In Louisiana?
Out-of-pocket costs for nursing home care are not affordable. Out-of-pocket nursing home care costs have been as high as $12,000 a month, but not much lower than $5000 a month.
The average cost is between $5,000 and $6,000 per month for nursing homes, and that’s just the median. There are some that cost more, and some that cost less. Then you have certain people with certain conditions who need additional care in addition to the basic nursing home.
What Is The Difference Between Medicare And Medicaid In Louisiana?
Medicare is a program that everyone is eligible for when they turn 65. Medicare just provides health insurance benefits for older people and replaces the health insurance that that person would have had through their work or through an individual policy.
The problem with Medicare and nursing home costs is that it doesn’t cover long-term nursing home stay. Meaning if an elder person got into an accident, was treated in the hospital, and finds that it’s going to take 30 to 60 days to recover, Medicare will cover that. But it is limited and will only cover up to 20 days in full with the possibility to extend it up to 90 days. However, it’s not going to cover a long-term nursing home stay.
Most people that go into a nursing home might spend anywhere between one to three years in a nursing home and that’s not going to be paid for by Medicare.
For more information on Misconceptions About Medicaid Planning, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (225) 465-1090 today.