Eligibility for Medicaid Benefits: Medicaid Asset Protection

Eligibility for Medicaidpay nursing home costs out of their own savings until
Planning and properly setting up your estate forthey have reached the financial eligibility for Medicaid.
Medicaid eligibility can reduce your fear of ending up inMedicare and Medicaid are often confused. It is
a nursing home because meeting Medicaidimportant to understand that these are two completely
requirements can save on average a eighty-fivedifferent programs with different benefits. Medicare is
thousand to one hundred and fifty thousand dollars.the health insurance granted to those who receive
Typically, the annual cost for nursing home careSocial Security. It is an entitlement program that could
ranges between $85,000 and $150,000. This placementbe compared to PPO's and HMO's like Blue Cross
and change in life means many things. It causes theBlue Shield and United Healthcare. Medicaid is a form
loss of personal autonomy and can come with a heftyof welfare and is largely based on income. To be
financial obligation.eligible for Medicaid, you must not earn more than the
Many people pay for these costs from their personalspecified amount in a one month period – in most
savings. This results in the depletion of all savings andstates the absolute maximum income level is $2,300
assets. Who is eligible for Medicaid? Only after yourper month.
assets have been depleted does one get eligibility forMedicaid is administrated by individual state
Medicaid benefits. There is an advantage to paying forgovernments, but is reimbursed by the federal
the nursing home with your own money. It allows yougovernment and thus most states rules are very
to choose where to live and it can eliminate having tosimilar but different. Each state has its own form of
deal with state bureaucracy. The disadvantage is theMedicaid, often called by different names. The state
huge expense. This is why careful planning is sooperates the program, but all programs must conform
important.to specific federal guidelines. This means that Medicaid
Medicaid asset protection for your estate is possible. Arules and regulations differ in each state, which can
long-term care insurance policy could possibly helpcause a lot of confusion. The best thing to do is
achieve this, but it not the best way to protect yourcontact your state to find out exactly what the eligibility
assets. Whether you are receiving Medicaid orrules are and what benefits are offered through the
Medicare benefits, it is important to take properprogram. These programs change often so it is
planning steps to make sure you are receiving all ofimportant to always have the most up to date
the benefits you are entitled to as early as possible.information available.
Medicare Part AUsing Medicaid Asset Protection for Eligibility
Medicare Part A is something that every aging personOne way people plan for Medicaid is by distributing
should be familiar with. This part of Medicare will covertheir assets before they require the benefits from
up to 100 days in a skilled nursing facility per illness. TheMedicaid. When this is done, individuals will be able to
catch is the actual definition of a skilled nursing facility.qualify for Medicaid faster than if they had to spend
In fact, due to the strict guidelines and varyingdown their savings and deplete assets. This is why
definitions, very few people are actually entitled toplanning for Medicaid can be difficult. It is nearly
these 100 days. The end result is that Medicare endsimpossible to know when you will need long-term care.
up only paying for 9% of all nursing home care in theHowever, planning for this care is one of the most
country.important things to do. An asset protection plan is one
Medicaid – What is it?way to go about planning. These plans will reallocate
Medicaid is the only way to obtain long-term medicalyour assets and transfer money, making you eligible
care in the United States. Most people are required tofor Medicaid when the time comes.