The high cost of long-term care has made planning a critically important issue for most middle class seniors and their families. In fact, most seniors likely will require some form of long-term care. Sadly, many of them are unprepared for the significant financial burdens it places on their family’s hard-earned savings. Financial devastation looms large for a family facing ongoing care at a rate of $10,000 or more per month.
Long-Term Care Options
While some seniors are able to afford private-pay care, the cost of long-term care will wipe out savings of all but the wealthiest families in a matter of years. Those who have planned ahead by purchasing long-term care insurance have a degree of certainty and peace of mind, knowing that they have a lesser need to rely on other sources in the future. Unfortunately, many cannot afford the high cost of long-term care insurance or worse, because of age of medical condition cannot qualify for long-term care insurance. If you do have long-term care insurance, you should be aware of what your policy covers. Many policies have high deductibles or provide for only a short period of care in a facility. In fact, many who have long-term care insurance still have to resort to Medicaid to pay for their care.
Medicaid Eligibility
The other option to pay for care is Medicaid. A joint federal-state program, Medicaid provides medical assistance to low-income individuals, including those who are 65 or older, disabled, or blind. Medicaid is the single, largest payer of nursing home bills in America and serves as the option of last resort for people who have no other way to finance their long-term care. Although Medicaid eligibility rules vary from state to state, federal minimum standards and guidelines must be observed.
Medicaid eligibility requires the applicant to meet complex and restrictive rules under the Deficit Reduction Act of 2005. Under the DRA, there are a myriad of regulations involving look-back periods, income caps, transfer penalties and waiting periods around which Medicaid eligibilty must be planned.
Our law firm can help you and your family avoid the financial ruin associated with the high cost of long-term care. Contact us today to start the process of understanding the issues surrounding Medicaid eligibility and to implement the planning and application process.