5 Reasons to Plan in Advance for Medicaid
Unfortunately, many people assume that they will be able to live at home until they pass away and bet on the fact that they won’t need any type of long-term care. Many also assume that they have ample time to prepare for when they will need long-term care.
However, because none of us have a crystal ball to predict the future and long-term care is extremely costly, delaying or making assumptions will put you at a MAJOR DISADVANTAGE and often results in CRISIS!
According to our senior living advisors, for most families the cost of long-term care is an overwhelming financial burden and without advanced planning, can result in a loss of all or a substantial portion of assets.
Regardless of the state you live in, working with the senior care consultants at Care Connect Direct can ensure that you develop a Medicaid asset protection plan and customized long term-care plan that will help to preserve your property and provide for your long-term care when you need it.
Here are five reasons why you should engage in advanced Medicaid and long-term care planning now…
Speed Up Medicaid Approval
Advanced planning allows you to develop a strategy for protecting and distributing/transferring assets that can make Medicaid approval quicker. Furthermore, Medicaid does not have equate to poor care, but planning in advance in the key. Advanced planning by our senior care consultants also keeps the information that must be legally disclosed in the application must simpler for the Medicaid agent to process, resulting in faster approval.
Avoiding the Look Back Period
According to our senior living advisors, you must be very careful when transferring property because Medicaid has an automatic look-back period. If you transferred assets during this look-back period, your Medicaid application might be denied. Advanced Medicaid planning allows you to transfer assets that could make you ineligible for Medicaid benefits so that the transfers do not occur during the look-back period. Certain states also allow specific types of annuities that can be used to preserve assets and still qualify for Medicaid as well.
Long-term Care Insurance May Not Be Sufficient to Pay All Costs
Some people do not think they need to engage in advanced planning for Medicaid asset protection because they purchased long-term care insurance policies. However, long-term care insurance does not always cover all costs of nursing home care or assisted living care. You could have a gap between the insurance benefits and the cost of care. If you have not carefully engaged in Medicaid planning with a senior care consultant, you could face substantial out-of-pocket costs for long-term care. Our Virtual Senior Care Services firm has licensed Life, Health and Annuities Agents on staff specifically for this reason to assist with Long-Term Care Insurance Claims on behalf of our clients.
Health Insurance Does Not Pay for Nursing Home Care
Many assume that your health insurance, such as Medicare will pay for nursing home care or long-term care and that is INCORRECT. Your health insurance coverage may pay for a short-term stay in a nursing home, however, health insurance is not designed to pay for long-term care. Medicare does not pay for long-term care either. Therefore, with the help from one of our senior living advisors, you need a Medicaid asset protection plan now in the event you need long-term care or nursing home care in the future.
Protecting Your Spouse
Advanced planning can ensure that your spouse will have the resources and assets necessary to care for himself or herself if you need nursing home care or assisted care. Without a Medicaid asset protection plan, your spouse could lose substantial property because he or she will be required to pay for your long-term care by liquidating assets. Even if Medicaid pays the cost initially, Medicaid may place a lien on the property, leaving your spouse without a home or other assets after your death.