Common Mistakes in Medicaid Planning
Cincinnati Medicaid attorneys can provide you with help creating a Medicaid plan. Medicaid planning is one of the most important ways that you can protect your assets as you get older. According to the Wall Street Journal, once you’ve turned 65, you have about a 40 percent chance of requiring nursing home care and a 20 percent change of requiring that care for no less than five years.
If you do not qualify for Medicaid, chances are the nursing home care you need will not be covered by any insurance. Private insurance policies and Medicare typically do not cover routine nursing home care required because you’re just old or sick and cannot handle activities of daily living any more. While policies like Medicare can cover skilled nursing care, most people need basic care called custodial care — and these people are on their own for paying the bills.
Optional long-term care policies typically aren’t the answer because of the high cost of such policies as you age and because of substantial coverage limitations. With no private insurance, Medicare, or long-term care coverage, Medicaid is the only option besides paying out-of-pocket.
The only problem is, if you don’t make a Medicaid plan, you may not be able to get Medicaid either. Zimmer Law Firm can provide insight into the Medicaid planning process and can offer personalized help creating a plan that works for you. You can give us a call if you’re ready to get your plans in place. You can also read on to learn about common mistakes in Medicaid, including the following common errors.
Not Making a Medicaid Plan
One of the biggest mistakes people make is not realizing they need a Medicaid plan at all. Many seniors believe Medicare will cover the costs of nursing home care, but unfortunately, this isn’t the case. Medicare pays for skilled nursing care in limited conditions, such as after a qualifying hospital stay. For most seniors, it won’t pay — so don’t count on Medicare and neglect to make plans to get the coverage you need.
Not Getting Legal Help With Your Medicaid Plan
Even those who realize they may need a Medicaid plan may not be aware of the specific legal steps that need to be taken in order to put a plan in place. Making a Medicaid plan is complicated and it’s not something you should try to do on your own because mistakes could cause disqualification for a limited time period. For example, if you transfer assets to loved ones within five years of the time you need Medicaid, this could lead to disqualification for the number of months determined by dividing the value of transferred assets by the average cost of a nursing home in your area. You don’t want to accidentally jeopardize your ability to get Medicaid to cover your care just because you don’t know the rules. Working with a lawyer helps to ensure this doesn’t happen.
Using the Wrong Techniques to make a Medicaid Plan
If you use the wrong tools, your plan will not provide the desired protections and a need for nursing home care could result in the loss of your legacy. For example, if you make a living trust and transfer assets into it, this will not protect those assets from being lost. Medicaid will still count the assets in your living trust as financial resources and will thus not allow you to get qualified for Medicaid until you’ve spent assets and fallen below the resource limits for eligibility.
Waiting Too Long to Make a Medicaid Plan
Making a Medicaid plan may involve transferring assets. Because of the five year lookback rule and the fact you could be disqualified from coverage if you make that transfer too soon, it becomes harder to protect your wealth if you’ve waited a long time to make your plans. While an experienced attorney can help with a crisis plan to protect as much wealth as possible if your need for nursing home care is imminent, it’s best to act well in advance of the time you will actually need Medicaid so you can maximize the chances of protecting all of your assets.
Getting Help from Cincinnati Medicaid Attorneys
Zimmer Law Firm can provide invaluable assistance with the Medicaid planning process. We can work with you to ensure you avoid mistakes and to make a plan that actually allows you to get coverage for expensive nursing home care when you need it instead of after you’ve impoverished yourself, lost your life savings, and lost the chance to leave a legacy.
To find out more about how Zimmer Law Firm can help you, join us for a free seminar. If you’re ready to create your customized Medicaid plan to protect your assets, give us a call at 513.721.1513 today to talk with Cincinnati Medicaid attorneys who can assist you.