The high cost of long-term care has made planning a critically important issue for most middle class seniors and their families. In fact, most seniors will likely require some form of long-term care. Sadly, many of them are unprepared for the significant financial burdens it places on their family’s hard earned savings. Financial devastation looms large for a family facing ongoing care at a rate of $8,000 – $10,000 per month.
Long-Term Care Options
While some seniors are able to afford private pay care, the cost of long-term care will wipe out savings of all but the wealthiest families in a matter of years. Those who have planned ahead by purchasing long-term care insurance have a degree of certainty and peace of mind, knowing that they have a lesser need to rely on other sources in the future. Unfortunately, many can’t afford the high cost of long term care insurance or worse, because of age or medical condition, they cannot qualify for long term care insurance altogether. If you do have long-term care insurance, you should be aware of what your policy covers. Does your policy cover home care. Does the home care attendant need to come froma certified agency? How many Activities of Daily Living do I need assitance with before my policy begins to pay for my care? Does my policy have a cost of living increase associated with it? Is my policy a NJ Partnership Program approved policy. For many, a long term care insurance policy can ofset some of the costs of care, but may not be enough. Consequently, Medicaid may still be necessary.
Medicaid Eligibility
The other option to pay for care is Medicaid. A joint federal-state program, Medicaid provides medical assistance to low-income individuals, including those who are 65 or older, disabled or blind. Medicaid is the single largest payer of nursing home bills in America and serves as the option of last resort for people who have no other way to finance their long-term care. Although Medicaid eligibility rules vary from state to state, federal minimum standards and guidelines must be observed.
While Medicaid eligibility with respect to long-term care was not difficult in the past, there has been a steady drift towards more complex and restrictive rules, the latest being the Deficit Reduction Act of 2005 which went into effect on February 8, 2006. These changes have resulted in complex eligibility requirements for those in need of Medicaid benefits. It’s no longer as easy as reviewing one’s bank statements. There are a myriad of regulations involving look-back periods, income caps, transfer penalties and waiting periods to plan around.
Our law firm has the experience and the expertise to help you navigate through the maze of long term care. Contact us today to start the process of understanding the issues surrounding Medicaid eligibility and to implement the planning and application process.