Medicaid Planning

Article submitted by Lynn Campisi, Attorney at Law.
For more information, she can be reached at 205-967-1010

Did you know that?
46% of us will need nursing home care, with an annual cost of about $60,000. With escalating needs for nursing care and restricted federal and state budgets, rules on Medicaid planning will likely tighten, especially where transfers or gifts are made.

Traditional Medicaid Planning
In the past, people gave their children everything, expecting the children to take care of them if something happened. However, what happens if this transfer makes you ineligible for benefits? What if your children go bankrupt, get divorced, die or need nursing home themselves? Your assets are no longer protected for you.

What is Medicaid Planning?
Medicaid planning focuses on items you will need to enhance quality of life for yourself and your dependents.

Exempt Assets
Excess resources can be used to purchase exempt items like a vehicle, personal clothing, furniture, a motorized wheel chair, and in some cases, a home or burial arrangements.

Consider Long Term Care Insurance
With Long Term Care Insurance, Medicaid allows you to protect (in addition to your $2000 resource limit) the equivalent of 3 years of benefit payments (including home care and assisted living).

Take Care of Those Who are Dependent on You
Medicaid allows you to protect additional assets for a spouse or disabled child by transferring your assets to special needs trusts established for yourself and dependents.

The Alabama Family Trust
This Trust helps preserve SSI and Medicaid benefits for all disabled Alabama citizens regardless of age. It is the only special needs trust that can protect assets for those 65 and older for extra needs not covered by Medicaid like extra sitters, a private room, supplemental therapy and certain pharmaceutical items excluded in the new Medicare Part D beginning January 1, 2006. For additional information, call 1-800-711-1303.

New Rules In Sight
Medicaid will not eliminate beneficiaries, but they will make it more difficult to qualify for benefits by discouraging transfers and gifts and imposing stricter penalties.

Hold on to Your Money
Medicaid planning should be about you and your dependents, therefore, until a nursing home is necessary, HOLD ON TO YOUR MONEY. Transfer excess assets after your life care needs are satisfied.