Medicaid is a government program that many seniors rely upon, because it will pay for long-term care. Medicare does not pay for living assistance, so a lot of seniors who were qualified for Medicare coverage ultimately look toward Medicaid for help with long-term care costs.
When you first hear about this, you may come to a simple conclusion. You can hang on to your assets throughout your life, and if you ever find out that you need long-term care, you can give gifts to your children.
This makes sense on the surface, but Medicaid is a program that was designed to provide a health care safety net for people with limited financial resources. The program does not want people to give away assets as a reaction after the fact, so there is a Medicaid look-back period.
If you submit an application for Medicaid coverage, program evaluators will examine your financial dealings going back five years. You are penalized, and your eligibility is delayed if they find that you gave away assets within this five-year look-back period.
The duration of the penalty would be calculated by comparing the amount of the divestitures to the average cost of nursing home care in the state of North Dakota. For example, if you gave away enough to pay for 18 months of nursing home care, your Medicaid eligibility would be delayed by 18 months. During this interim, you would be forced to pay for your nursing home care out of your pocket.
Medicaid Planning Information
Approximately 70 percent of people who are fortunate enough to reach the age of 65 will someday need living assistance. According to a survey that was conducted by Genworth Financial, the median annual cost for a private room in a nursing home in North Dakota was $93,623 in 2014.
A government study that was conducted a while back found that the average length of stay is around two years and three months, and 10 percent of residents remain in the facilities for at least five years.
When you digest these numbers, you can see that long-term care costs can be devastating if you have to pay out of pocket.
Medicaid can provide a solution if you plan ahead effectively. If you would like to obtain detailed information about the program, download our special report. This report will answer most of your questions, and it is being offered to our readers on a complimentary basis right now.
To access your copy of the report, visit this page and follow the simple instructions: Grand Forks ND Medicaid Planning.
Free Elder Law Consultation
We can help if you are concerned about long-term care costs. Our firm offers free consultations, and you can send us a message through this page to set up an appointment: Grand Forks ND Elder Law Attorneys.