We get it, we watch our parents work as long and as hard as they can to save and have a nest egg in their golden years. They pay vast amounts into social security and carefully choose their insurance plans and figure that should go a long way towards having their needs taken care of in the last years of life, when they need the most help. Their savings, though, they would like to be able to hold on to. To share with their children or grandchildren, give to a charitable organization or church, or just because they feel better having it, just in case.
So when they hear an ad on TV or get a flier in the mail telling us their assets can be protected and can Medicaid can pay for our care, it sounds like the logical path. But be aware of two important considerations before moving forward! Using an estate planning attorney can be expensive and a little extra information can help you determine whether you are on the right path.
Where do they want to live?
There are many different types of senior communities that offer care and assistance but only one of those types accept Medicaid to pay for the monthly rent and care. That would be a skilled nursing home. Nursing homes are medical environments that provide good care but are much more institutional and medical feeling than assisted living and independent living communities. While there is nothing wrong with living in a nursing home, I would say 100% of people if given a choice would rather live in an assisted living. If you choose to have your mom or dad’s assets sheltered to be approved for Medicaid, you almost certainly will need to choose a nursing home rather than assisted living for them, which leads to the next consideration.
Do they have skilled care needs?
If you have made the decision that living in a nursing home is acceptable, the next thing you need to be aware of is that once you get Medicaid and are ready to move into nursing care, you have to pass a level of care determination and show that you have skilled nursing level care needs. Needing help with activities of daily living such as dressing, bathing, cooking and other personal care do not generally qualify a person to live in a nursing home. Although it varies, usually a person needs to have very high or skilled medical needs to be qualified to live in a nursing home and have Medicaid pay for it.
In summary, attempting to qualify for Medicaid when you need to shelter assets is complicated and not always successful for a variety of reasons. It pays to understand the potential negative consequences that can happen, before you get started. Please feel free to call us at Crossroads to get more information before you get started.