There is a great deal to take into consideration when you are planning ahead for your senior years. You may be under the assumption that Medicare will take care of all of your health care expenses, and you may also assume that Medicaid is not relevant to you.
In fact, Medicare does not pay for everything in full. There are out-of-pocket expenses that you should be aware of when you are budgeting for your retirement years. These would include co-payments, deductibles, and monthly premiums.
The out-of-pocket expenses are only part of the equation. Most senior citizens will eventually need help with their activities of daily living, and Medicare does not pay for long-term care.
Medicaid does pay for living assistance, and this is why it is relevant to a significant percentage of senior citizens.
Medicaid Planning
It takes careful planning to qualify for Medicaid coverage, because it is a need-based program. Most people retire with some resources, and the income and asset limits are very modest.
People who want to qualify for Medicaid typically give assets to their loved ones before they apply for coverage. You have to look over the horizon if you want to angle toward Medicaid eligibility, because there is a 60 month look-back.
You have to complete your divestitures at least five years before you apply for coverage, or your eligibility will be delayed.
In many cases, one spouse will need long-term care while the other spouse is still healthy enough to remain at home. Under these circumstances, the healthy spouse can retain ownership of a certain store of property without impacting his or her spouse’s Medicaid eligibility.
The healthy or community spouse can retain ownership of the couple’s home, with an equity limit of $828,000 for Connecticut in 2015. In addition to this, the healthy spouse is entitled to a Community Spouse Resource Allowance. This is equal to half of the shared countable assets.
There is a maximum allowance of $119,220, in 2015, and the minimum allowance in Connecticut is $23,844.
Under different circumstances, income that is earned by the institutionalized spouse must be contributed toward the cost of the care that is being received. However, if the community spouse is relying on some or all of this income, he or she may be entitled to a Monthly Maintenance Needs Allowance.
The maximum Monthly Maintenance Needs Allowance in Connecticut is $2,980.50 in 2015, and the minimum is just under $1970.
Medicaid Planning Report
Medicaid pays for most of the nursing home care that elders are receiving in our country, so you should understand the rules and regulations when you are looking ahead toward your twilight years.
If you would like to obtain some in-depth information, download our special report. We are offering the report on a complimentary basis, and you can visit this page to obtain access: Hartford CT Medicaid Planning.
To learn more, please download our free medicaid maintenance needs allowance in Connecticut here.
Mr. Nirenstein is licensed to practice before the courts of the State of Connecticut and the United States District Court. He is a member of the Connecticut and Hartford County Bar Associations, and the Estate and Probate, Elder Law, Business Law and Real Estate Sections of the Connecticut Bar Association.
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