Nursing Homes & Medicaid Planning

Two of the absolute certainties in life are that we will all get older, and we will all die.  If we are lucky, we will age gracefully, keep our health and independence, and die peacefully in our homes at a ripe old age.  That will not be a reality for all of us.  Most of us will have to at least consider a nursing home at some point along with familial support, or in-home care services.  We will have to weigh the burdens we are placing on our loved ones by staying home with our happiness, our longevity, and our support needs.  We will have to weigh the cost of nursing home care and the financial burden that it will place on our spouses, and our estates.              

Are you worried about the costs of nursing home care?  If you are not, you probably should be because unless you plan, Medicaid isn't the answer you might think it is.    

The first thing that you need to understand about Medicaid is that it is a need-based government program.  In the context of nursing home care, that means that Medicaid is only going to pay for you or your spouse's nursing home care if you don't have the ability to pay for it yourself.  In other words, you must be broke before Medicaid will pay.      

 If you clicked on this article, you are probably aware of the costs of nursing care.  Here in Wyoming, the average cost of care is hovering around $10,000.00 per month.  That is $120,000.00 per year.  If you are facing advanced care issues, like Alzheimer's or dementia, the cost will likely be even higher.

 At Lubnau Law we see clients all the time who come to us for help with Medicaid Planning.  They want to know, what will happen to my spouse if I enter the nursing home and we must pay $10,000.00/month for my care?  What will happen to our home, our savings, our kid's inheritance?  How can we get qualified for Medicaid so the program we have paid into our entire lives will foot the bill?   All these concerns have solutions; they just require planning. 

 For Medicaid Pre-Planning to be most effective, we must avoid, or work around, the constraints of the 5-year lookback Rule.  That means that we need to complete the bulk of the Medicaid Planning long before you need to apply for Medicaid.  So, if you are around 75 years old, or maybe even younger and you have significant health concerns or certain property that you want to be certain is passed on to future generations, it is time to make an appointment with your estate planning attorney to discuss what Medicaid Pre-Planning solutions are available to you.  

 But what if you are older, maybe you feel like you missed that Pre-Planning window and are closer to the nursing home than you would like to admit? Is it too late to plan?  Is it too late to protect my spouse and my children's inheritance?  Great news, it's almost never too late.  While certainly not as effective as Pre-Planning, with Emergency Medicaid Planning, even if you or your spouse are already in the nursing home, it is not too late to save a substantial portion of your estate while getting qualified for benefits.  Unless you or your spouse are already qualified for Medicaid, there is probably some planning we can accomplish that will save a significant portion of your estate.                       

    Use these simple triggers to determine if it is time to consider Medicaid Pre-Planning or Emergency Medicaid Planning:  

1.  I am single and 70 years old                                               

2. I/We did Medicaid Pre-Planning but am close to needing the nursing home

3.  I am married and 75 years old                                               

4. I/We didn't do Medicaid Pre-Planning and am close to needing the nursing home 

5.  I am not 70 -75 but have significant health issues                              

6. I am, or my spouse is, in the nursing home on private pay 

7.  I am 60 and have family history of Alzheimer's or dementia                      

8. My estate is being diminished due to the cost of nursing home care 

9.  It is likely that I (or my spouse) will enter the nursing home in the next 5 years 

10. I can't afford my expenses while paying for my spouses nursing home care   

11.  I have assets that I want to be certain ends up with my heirs            

12. I'm close to entering the nursing home and own my home   

13.  My children do not live nearby               

Is it time to start planning? Give Lubnau Law a call: (307) 682-1313