Most American senior citizens are someday going to need help with their day-to-day needs. Around 70 percent of people who are reaching age of 65 are going to need living assistance eventually, according to the United States Department of Health at Human Services.
Though you may qualify for Medicare coverage if you have paid taxes on your income throughout your life, Medicare will not pay for long-term care.
This care is very expensive if you reside in a facility full-time. In the state of Connecticut, an extended-stay in a nursing home could cost hundreds of thousands of dollars. Assisted living communities are also quite expensive. In Connecticut, the median annual charge for a private, one-bedroom unit in an assisted living community is over $60,000.
Medicaid is another government health insurance program. This is a need-based program, so you must stay within asset and income limits to qualify. Medicaid will pay for long-term care.
If you were to spend everything that you have paying for long-term care out-of-pocket, you would then be able to qualify for Medicaid to pay for the remainder of your care.
Clearly, this is not a very appealing proposition. As a response, people often give away assets to their loved ones before they apply for Medicaid.
However, there is a five-year look-back period. You must complete these divestitures at least five years before you apply for Medicaid, or you will be penalized, and your eligibility will be delayed.
Staying at Home
Some people who need help with their activities of daily living can get the help that they need in their own homes. Without even looking at the financial end of things, this option can provide a number of different advantages.
The family home can carry a great deal of emotional significance, and you may be well entrenched in your place of residence. When a senior citizen must be uprooted from his or her familiar surroundings, the outcome can sometimes be less than ideal.
There are expenses involved when you engage the services of an in-home caregiver, but this type of care is going to be less expensive than full-time residence in an assisted-living facility.
If you need help paying for in-home care, you may be able to qualify for the Medicaid waiver program. This program will help with in-home care costs.
It is called a waiver program because the income and asset limits are not as stringent as the limits for full-blown Medicaid coverage. In other words, some of the requirements are waived.
Medicaid Planning Report
We have provided a bit of basic information in this post. To learn more about Medicaid planning, download our special report.
The report is free, and you can access your copy through this page: Hartford CT Medicaid Planning.
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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