Elder Law Answers Ep 05 2018 Medicaid - Real Life Examples

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We always mention nursing homes, the high cost of care, and Medicaid. But many people really don’t understand how all of this ties together. Today, we are going to discuss some real life examples of clients we’ve worked with. Obviously, we can’t share actual client’s names, but we can share enough of the stories for our listeners to get a better understanding! Basics – Healthcare insurance such as Medicare or your Medicare Supplemental policy will not pay for long term care (nursing home) – at most it may pay for up to 100 days. LTC insurance products that are substantially more expensive may pay for a portion of this care. Easy way to remember “Medicare doesn’t care anymore if you need LTC”; what you’d need after Medicare is private pay, LTC ins., or Medicaid Home & car = exempt during your life (and your spouse’s) Crisis Planning – when a person hasn’t planned in advance and uses our services after loved one is in nursing home or needs one in near future (within 5 years) Asset Protection (ie. 5 yr. planning) – when a person/couple plans 5 years prior to a potential care need to protect selected assets Medicaid – state pays most of care costs, but patient’s income will go toward care costs, married person’s outcome may be slightly different. Care costs does not include the maintenance, insurance, taxes related to the home Estate Recovery – WV is required by federal law to recoup what they spent on a Medicaid recipient from their estate upon their death. Countable assets become part of the recipient’s estate upon their death (or their spouse’s death whichever is later. Our more recent clients have received a letter from DHHR upon their death for the state to consider what assets remain. Life insurance – Combined cash value of $1500 counts as an asset. Most people have very little knowledge about what life ins. they have and its value. Keep better records on that! Crisis Planning Rule of Thumb: Marital status: Single person: Can usually save about ½ of assets while spending about ½ of assets on care Married couple: Can usually save most of the assets Pros: Can usually save some assets or proceeds of assets, but must move quickly and liquidate asap Cons: Usually have to liquidate all or most of the countable assets, but

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