Most people will qualify for Medicare when they reach the age of 65. This is well and good, but Medicare will not pay for a stay in a nursing home or assisted living community. For this reason, the majority of the long-term care that is received by seniors in the United States is paid for by the Medicaid program.
Medicaid is a government health insurance program that is jointly administered by the federal government along with each respective state. It is intended to provide a safety net for people who have significant financial need. If you retire with some income, some savings, and Medicare coverage, you won’t need Medicaid at first, and you would not qualify for Medicaid.
However, Medicaid can enter the picture late in your life if you need long-term care.
In the state of New York the average annual cost for a room in a nursing home exceeds $180,000. Assisted living communities are expensive as well. According to Genworth Financial, in 2013 the median cost for a year in a one bedroom unit in an assisted living community in the state of New York exceeded $44,000.
It is difficult to impossible for many people to pay these expenses out-of-pocket. Medicaid becomes the solution for a significant percentage of seniors.
Because Medicaid is a program that is only available to people who can demonstrate financial need, Medicaid planning involves the divestiture of your assets. There is a five-year look-back period. You must complete your divestitures five years prior to submitting your application, or your eligibility will be delayed.
Alzheimer’s disease strikes nearly 13 percent of all senior citizens. Over 40 percent of people who are 85 years of age and older have contracted the disease.
Alzheimer’s causes dementia, and many people who are suffering from Alzheimer’s induced dementia reside in nursing homes.
Because of the five year look-back, you must act well in advance if you want to qualify for Medicaid to pay for long-term care. As a result, the appearance of early Alzheimer’s symptoms could trigger the need for a Medicaid spend down.
The Alzheimer’s Association website has a section that is devoted to early warning signs and symptoms. You can access the page through this link if you would like to educate yourself: Early Alzheimer’s Symptoms.
Free Medicaid Planning Report
Medicaid is going to be quite relevant for s significant percentage of senior citizens. You should certainly understand the facts so that you can plan ahead appropriately.
Our firm has prepared a special report that covers the subject of Medicaid planning. The report is being offered free of charge, and you can obtain access through this website.
Click the following link to get your copy of this informative report: Set the Stage for Medicaid Eligibility.