Myth 2: I am wealthy. I don’t need to think about Medicaid.
FALSE. Did you know that Medicare and most insurance doesn’t pay for long term care like nursing homes, home care or private duty?
Healthcare costs are rising every day and many are tapping their savings to pay for these costs. Even if you have saved for retirements and have assets, the out of pocket costs for care could wipe out your savings. It is not uncommon for families to pay over $200,000 a year for care out of pocket as nursing homes and home care is not covered by Medicare. In 2017, the national, daily average for nursing home care for a shared room was $235 or almost $86,000 that must be paid for out of pocket most of the time. Those receiving care at home pay an average of $46,332 annually for a home health aide, which is also not covered by insurance most of the time.
Medicaid may step in and help pay for long term care. But to qualify, you have to nearly deplete almost all of your assets but your home, and even that the government can take after the remaining spouse’s death if money is owed. Note: special rules apply if your home value is over a certain amount, depending on your state.
However, with effective planning, you can retain control over choices about what kind of care you might want and how you choose to pay for it. Planning is essential to assuring the future you and your family desire.
Did you know – that when you apply for Medicaid they look back at your spending over the past five years to make sure that you aren’t purposely depleting your assets. You can be penalized for any gifts, big or small, over the $500 per month limit, delaying when Medicaid can help with expenses.
Follow us at Gentreo.com to learn more as we launch our upcoming newsletter to help you learn about what choices you and your family have, how others manage similar situations, and how you can prepare for the future you and your family desire.
The team at Gentreo has more than 20 years experience in the eldercare industry. From home care and hospice and private duty to aging in place, they have helped create companies that are changing how Americans care for seniors.