Medicaid Planning for the Spouse at Home

Article submitted by the Elder Law Offices of Petrich & Sykes, LLC.
For more information they can be reached at 412-531-7123, or visit their website: www.elderlawofpgh.com.

When a married person applies for Medicaid to pay for a long nursing home stay, how will the spouse still at home survive financially?

This situation often presents a challenge for several reasons.

• The applicant's income may go to the nursing home once Medicaid is approved, leaving the home spouse with much less money for the household budget.
• The couple may be unsure when to apply. A complicated formula determines when a married applicant is financially eligible for Medicaid.
• The spouse at home may have costly living expenses, such as high prescription costs, large home shelter expenses, or the need for assisted living.

Fortunately, federal and state laws provide certain protections that help many home spouses keep both assets and income.

Protecting Assets and Income
The first determination to make is when to apply for Medicaid. That means knowing when the couple's combined assets reach the point of eligibility. For this purpose, you can disregard certain assets that are considered "exempt" for Medicaid purposes, such as the couple's house, furnishings, personal items, medical equipment, and one motor vehicle. Of the "non-exempt" (countable) assets that remain, the spouse at home (called the "community spouse") may keep at least one-half of those assets, up to a maximum of $92,760 (currently).

Depending on income and other factors, the community spouse may also be entitled to keep additional assets. A qualified elder law attorney can help you maximize this additional amount, and advise you when to apply for benefits, so that you don't inadvertently spend more assets than necessary.

If the community spouse has unusually high income needs, such as the need to pay for assisted living services, high rent or other shelter costs, or high medical or prescription costs, that spouse may be able to keep even more in assets or income.

If you have a spouse or loved one who receives skilled nursing care now, or may in the near future, it is in your interest to consult with an elder law attorney. You may be able to keep far more in assets and income than you realize.