Can Medicaid help pay for Long-Term Care?
Since many seniors can not afford long-term care insurance, or do not qualify, the typical person will pay these costs until most family assets are gone and then apply for Medicaid. However, with proper pre-planning, you can qualify for benefits before your assets are gone. What is Medicaid? Medicaid (Medi-Cal in California) is an entitlement program created by the Social Security Act, Title XIX. It is the primary provider of long-term care benefits for seniors. However, benefits are not automatic. You must plan in advance in order to get the most benefits possible. Medicaid planning is an important part of an overall plan to protect and preserve one’s assets. Annuities are an effective tool to help seniors preserve assets and still qualify for Medicaid. The advantage of assets held in annuities instead of CDs, stocks, bonds and mutual funds is that Medicaid does not require the amount of money in a properly annuitized annuity to be spent down before its owner can qualify. Medicaid onl
Medicaid was enacted to provide health care services for the impoverished of our nation. Recent legislation has made it extremely difficult for a person of modest means to qualify for Medicaid benefits by gifting or otherwise disposing of personal assets for less than fair market value. The Omnibus Budget Reconciliation Act of 1993 (OBRA’93) provided that gifts of assets within 36 months (60 months for gifts to certain trusts) prior to applying for Medicaid could delay one’s eligibility for benefits.
