When Will Medicaid Cover Nursing Home Costs?
Medicaid is a joint program of the federal and state governments that can cover the nursing home costs of individuals who meet its strict financial requirements.
Single Person Medicaid Qualifications:
A single person may qualify for Medicaid only if they have no more than $2,000 of assets.
Married Couple Medicaid Qualifications:
For married couples, the rules are more complex. When a married person applies for Medicaid, the assets of both spouses are counted jointly for qualification purposes.
What is Medicaid's CSRA?
The healthy spouse (referred to in the Medicaid regulations as the “community spouse”) is entitled to retain an amount referred to as the “Community Spouse Resource Allowance” or “CSRA.” The CSRA is equal to one-half (1/2) of the couple’s assets up to a maximum of $128,640. The maximum amount is usually adjusted on an annual basis. Accordingly, if a couple owns $200,000, the healthy spouse is entitled to keep $100,000. However, if the couple owns more than $257,280, the healthy spouse may retain no more than $128,640.
Can Medicaid Planning Help the Community Spouse Keep More Assets?
Although the CSRA is not very generous to the healthy spouse, there are techniques that an attorney experienced in Medicaid planning can use to preserve substantially more of the couple’s assets. However, in order to take advantage of these techniques, it is often essential that both spouses have comprehensive durable powers of attorney in place. Unfortunately, many powers of attorney are prepared by attorneys who are not familiar with the intricacies of Medicaid planning and do not authorize the type of actions necessary to preserve assets for Medicaid purposes. If you would like to learn more about how to protect your assets, please call our office at 440-930-2826.
Avon Lake, Ohio Elder Law Attorney
At Joseph L. Motta Co., we pride ourselves in our expertise of elder law and Medicaid planning. From our local office in Avon Lake, OH, we help our clients to leave a legacy, not a predicament. Let us help you review your power of attorney and other estate planning documents. We'll make sure the comprehensive durable power of attorney is sufficient for Medicaid planning purposes and discuss some methods for preserving assets for the community spouse should the other spouse need the assistance of Medicaid to pay for the costs of nursing home expenses. Please call our office at 440-930-2826 to schedule a free consultation .
Many people fail to realize that neither their health insurance nor Medicare will cover long-term care. As a result, many middle-class seniors fail to plan for long-term care and can spend their entire life savings before becoming impoverished and turning to Medicaid. Medicaid is a joint program of the federal and state governments that will pay the long-term care costs of those who have little or no assets. The rules governing Medicaid in Ohio are extremely complex and have undergone substantial changes in the last few years which is why we create a Medicaid Guide each year with some basic Medicaid eligibility updates. If you have questions about Medicaid eligibility, income, savings, assets and more, please contact the offices of Joseph L. Motta for a free consultation.