Understanding Medicaid And Paying For Long-Term Care
Most of us are able to pay our bills and stay financially afloat. Some of us have a 401(k), an IRA, and maybe even some savings and investments.
But as we are living longer, and as the price of assisted living, nursing homes and memory care rises, we worry about how we will be able to pay for our care. Medicaid does offer hope and help. Navigating the system can be challenging without a full understanding of how it works. At Horacio Sosa, P.A., we will work with you so that you have a plan that works and attain the benefits you deserve.
The Rumors About Medicaid Are Not All True
There is a lot of misinformation about Medicaid out there. The rumors abound as to how Medicaid works and who is entitled to it. Here are some of the misconceptions and the correct information:
- Medicaid pays for nursing home costs for only the very poor elderly. This is not true. With proper planning, many assets can be protected and retained. Timing is crucial, however. Do not wait until the last minute or until you need help to plan for Medicaid. The Institutional Care Program (ICP) allows nursing home residents to pay for health care and stays in nursing facilities.
- You cannot transfer money and give it to your family within five years prior to getting Medicaid. Proper planning is the best way to avoid “cannibalizing” all of your savings or assets to pay for care when you are older.
- It is difficult to be eligible for Medicaid. Not true. Generally speaking, you must meet four basic qualifications. These are that you are over 65, live in Florida, have a Social Security number and be in need of nursing facility services.
- Medicaid can take your home right out from under you. Again, this is patently not true. There are ways to protect and preserve your home.
Overlooking a Medicaid law while you are planning finances and moving assets will cause penalties or the rejection of your Medicaid application. While financial advisers may understand investments, they are not qualified to offer legal planning and advice, and may not have the experience or skill to effectively plan for your long-term care needs.
Many assets are not “exempt” and can work against your eligibility for Medicaid. An attorney or firm that focuses on planning and elder law will know which assets are exempt and which are not. Unlike financial planners or consultants, attorneys are bound to confidentiality and must adhere to the regulations set by The Florida Bar. Get more answers to common Medicaid questions.
Get Qualified Legal And Financial Planning Advice
At Horacio Sosa, we understand how to navigate the complexities of the Medicaid system. We can help you and your family plan for the future. We will work to preserve your assets for you and the next generation. Call 954-361-8966 to speak with a member of our team. You can also send us an inquiry email so that we can be in touch. We serve clients in Davie and throughout the South Florida area.