Nursing Home Pre-Planning
Realities of Living Longer
The high cost of long-term care has made planning a critically important issue for most middle-class seniors and their families. Most seniors will likely require some form of long-term care. Sadly, many 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 $6,500 to $9,000 or more per month in Birmingham and Shelby County.
Medicaid Does Not Pay for Nursing Home Care
There are only three ways to pay for long-term care: (1) our income and assets, (2) long-term care insurance, and (3) Medicaid. Medicaid is a joint federal-state program, Medicaid provides medical assistance to low-income individuals, including those 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.
While Medicaid eligibility regarding long-term care was not overly restrictive in the past, there has been a steady drift towards more complex and limiting rules, the latest being the Deficit Reduction Act of 2005 which went into effect in 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 is a myriad of regulations involving look-back periods, income caps, transfer penalties and waiting periods to plan around. Considering the 70% likelihood of needing long-term care and its ruinous cost, shouldn’t you make nursing home pre-planning part of your estate plan?
Is somebody you love going into a nursing home soon and you are afraid they will lose everything?
When we hear the word “crisis,” we think of disasters or calamities of epic proportions. Well, that is where many Americans find themselves when they (or a family member) try to stay above water financially when dealing with the outrageous costs involved with senior care—especially when care facilities are involved.
You are right to fear the economic devastation that nursing home cost can have on what a loved one has scrimped and saved a lifetime to accumulate because neither Medicare or Medigap health insurance pay for long-term care There is really no time to waste – delaying addressing this crisis just means wasting money and adding stress. The sooner you get going on this, the more you can save.
The good news is there are strategies that can often save at least half and often more of a loved one’s wealth!
Nursing homes have a conflict they do not disclose to you. You will pay them more than Alabama Medicaid will pay them. They also do not tell you they have no duty to help you save anything. The nursing home will recite the Medicaid asset limits and blithely explain that you have nothing to worry about because after you get down to these limits (i.e. run out of money) Alabama Medicaid will pay for your care.
The truth is Medicaid law, just like tax law, has loopholes that can be used to your advantage if you have a knowledgeable advocate who knows how to use them. If you asked the IRS in 2015, they would tell you that big corporations must pay 36.9% income tax on their taxable income yet U. S. Today reported that in 2015 twenty-seven hugely profitable companies (billions in profits) in the Standard & Poor’s 500 paid no taxes. Companies like United Continental Airlines, General Motors, Hewlett Packard, E*Trade, PG&E, and Weyerhauser.
We Want to Help
You too, just like these industry giants, can use outside the box strategies and prevent your loved one from going broke in a nursing home.
We have the experience and the expertise to help you avoid the financial ruin associated with the high cost of long-term care. Contact us today to make an eligibility plan.