What is Medicaid?
Medicaid is a jointly funded, Federal-State healthcare program for low-income individuals and others requiring healthcare coverage. It covers children, the aged, blind, and/or disabled and other people who are eligible to receive federally assisted income maintenance payments.
What is Medicare?
Medicare is the federal health insurance program for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant, sometimes called ESRD).
What is the difference between Medicaid and Medicare?
Medicaid is health insurance for families who may have a below average income and may not be able to afford to pay out of pocket for Medicare. Medicare is health insurance that provides options for families that can afford to pay for health insurance, with slightly more benefits.
What is Medicaid Planning?
Medicaid Planning is a service provided to clients who wish to receive Medicaid in the future. People generally pursue Medicaid planning for the sole reason of not being able to cover their medical costs with their assets alone and because Medicaid is the only insurance which will pay for home care aid and for nursing home costs.
Why should I plan for Medicaid?
Most people begin Medicaid planning well before their retirement as ownership of certain assets will make one eligible for Medicaid. Planning for Medicaid can help one prepare for unseen events in the future such as sudden illness. Medical treatment in the United States is extremely expensive. According to a poll conducted in 2014, the average amount for a hospital stay is $10,000.00. This is where the benefits of Medicaid comes in. Medicaid eligibility is determined according to one’s income and household size. So, for example, if there was a two-person household, the income requirement to qualify for Medicaid would be:
$14,800.00 annually, or $1,233.00 monthly for individuals that are blind, disable or over the age of 65.
$22,412.00 annually, or $1,868.00 monthly for individuals who are single or couples without children.
Additionally, Medicaid also pays for long-term nursing home care, assisted living and senior living communities, adult day care and home health care.
How should I go about Medicaid Planning?
Correct Medicaid planning should be done at least five years in advance, as transferring assets in less than five years before applying to Medicaid may result in a penalty or make one ineligible. Long term care is EXTREMELY costly, and many families cannot afford to give the care their loved ones need because they haven’t planned ahead. Don’t wait too long as many people end up kicking themselves for putting this seemingly unimportant task to the side. Medicaid Planning is safe, easy and can save families tens of thousands of dollars a year. An elder law attorney is your best choice when planning ahead for Medicaid eligibility.