What is Medicaid planning and asset protection?
Medicaid is the single largest payer for nursing home care in the United States. Medicaid is a joint federal and state program. In Colorado, through the Home and Community Based Services Program, qualified applicants who do not require nursing home services can receive coverage for assisted living facilities, prescription drugs or in-home visits. Medicaid is a needs based program available to those meeting certain asset and income tests. Generally an individuals assets may not exceed $2,000 and his or her income cannot exceed approximately $1,500 per month. However, certain assets and certain income may be exempt or non-countable for purposes of Medicaid. Proper planning may permit the conversion of non-exempt assets to exempt assets. In many cases, proper planning may save the family home. In addition, an individual is permitted under the Medicaid rules to gift assets to family members and wait for a penalty period before qualifying for Medicaid. Federal legislation also provides prot
