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Medicaid provides healthcare coverage for thousands of Americans including eligible low-income adults, children, pregnant women, elderly adults, and disabled people. Medicaid is administered by states, as required by federal requirements. The program is jointly funded by states and the federal government in the United States.
Medicaid Planning covers a wide variety of services provided by an equally wide range of professionals.
Any assistance given to a potential Medicaid applicant in advance of and in preparation for their Medicaid application is a general concept of Medicaid planning.
Medicaid planning can be as simple as helping with document processing and preparation, or as complex as a complete restructuring of one’s financial assets.
Much of the problems associated with Medicaid planning take place when the limits of financial eligibility are near to, or over, the individual’s monthly income or resources.
Medicaid eligibility is very complicated; the rules often change, they vary in each state, they differ within each state by the program, the application is time intensive and the review process is long and complex.
The consequences of being denied Medicaid are severe and can have a negative effect on the comfort, happiness, and even the health of the applicant and their entire family.
With the help of an expert financial planner, clients can be assisted in structuring their financial resources and preparing documentation to ensure the best possible acceptance into the Medicaid program.
Medicaid Planners create trusts, manage transfers of assets, and convert countable assets into exempt assets to ensure eligibility and to preserve the resources of a family.
There are several circumstances which require effective Medicaid Planning:
1. When a Single Spouse needs care
The cost of caring for one spouse can use the couple’s savings. The couple’s primary home is exempt from Medicaid’s asset limit, given one of the spouses’ remains living in the home.
Additionally, to safeguard the healthy spouse financially, there are spousal impoverishment rules in place for couples where one spouse is applying for Medicaid home nursing or a Medicaid waiver based on home and community services.
That includes both an income allowance and a non-applicant spouse resource allowance. This resource separation and income allocation is necessary and sometimes, unfortunately, complex.
2. When both Spouses need care
The costs of long-term care for two individuals can very quickly bankrupt most American families. Without one spouse in a position to care for the other, the financial and care burdens created by a Medicaid denial and placed on the adult children are significant.
When adult children have their children, they can be overwhelming.
The use of effective Medicaid Planning is suggested due to the critical nature of acceptance into Medicaid and the lack of a healthy spouse to engage in planning.
3. Long-term planning for Healthy Couples
Medicaid Planning is beneficial for healthy families wishing to preserve some of their assets for their kids and grand kids. Without a need for immediate care, families are more likely to plan themselves without professional guidance.
It should be noted that a planning mistake can impact eligibility for as long as 5 years (in California, 2.5 years). This is because there is a look-back period at Medicaid.
If one is not confident about the ability of their family to manage certain complex legal and financial techniques, it is advised to use a Planner.
One might believe that if they, or a loved one, are healthy, there is no reason to contact a Medicaid planner for further progress. Even though one does not anticipate a need for Medicaid shortly, advancing Medicaid Planning is key.
The perfect way to start preparing for long-term care needs is actually before a real need arises.
Many families end up paying out of pocket for nursing home costs, or other long-term care costs, without preparation, until their assets run out. Thus they qualify for Medicaid.
That said, if one plans, there are plenty of notable planning opportunities that Medicaid planners can help with.
Early Medicaid Planning is the best way to help protect one’s assets while still being able to qualify for Medicaid when the need arises. This is possible by having a combination of effective, entirely legal tools designed to bring you within Medicaid requirements before you’ve spent your life savings on healthcare.
Our mission is to help you achieve your goals by showing you ways of protecting what's important to you, investing in your future, and preparing for your retirement.