Medicaid planning is complex, and navigating it with your loved one may be frustrating. The application process is time-consuming, so understanding the planning process is essential if you want to get your loved ones the care they deserve.
To save yourself unnecessary stress, consider starting early and working with a professional to ensure your loved ones have the financial resources they need.
Financial eligibility
A variety of factors determine your Medicaid eligibility, but one of the most important factors is income eligibility. Modified Adjusted Gross Income (MAGI) determines eligibility for CHIP, Medicaid, and other programs. Some individuals are exempt from MAGI-based income eligibility.
Healthy spouse allowances
If your spouse requires long-term care while married you may require some allowances. For example, the Community Spouse Resource Allowance allows the healthy spouse to keep half the shared countable assets. Also, there is a requirement that the income brought in by Medicaid must go to the care of the spouse, but the program can waive it if you need it.
Medicaid estate recovery mandate
If you use Medicaid to pay for long-term care, the program must seek reimbursement from your estate through the Medicaid estate recovery mandate. There is an exception if an adult child provided care for you for two years in that home. This exemption protects the home during estate recovery.
You and your loved one can still enjoy your golden years if you take the proper steps to preserve your legacy. Navigating Medicaid is difficult, but there is a plan out there that works for you and your relatives. With the right personalized attention, you can ensure that your family gets the care and resources you need.
Kevin Tharpe
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