The decision to transition a loved one to a long-term care nursing home facility is never an easy decision. In addition, the decision and discussion on how to pay for a loved one’s long-term care is an equally difficult decision. Furthermore, paying for long-term care is unique to each family’s circumstances and situation.
- Some People Will Rely on Medicaid Assistance to Pay for their Long-Term Care
- Some People Will Rely on Long Term Care Insurance (this is become less and less likely due to companies no longer offering the insurance and rising premiums)
- Some People Will Have To Pay Their Own Way
- Some People Will Use a Combination of the Above
Some Troubling Information
- The Average Cost in a Nursing Home is $5,000 to $6,000 per month (that is $60,000 to $72,000 per year)
- The Average Stay in a Nursing Home is 3.4 Years (although for Alzheimer’s Patients the Average Stay is Much Longer)
- The Average Percentage of Nursing Home Residents Receiving Medicaid Benefits is 64%
It is easy to see that, on average, a person paying their own way in the nursing home, can expect to pay between $204,000 to $244,800 of their hard-earned life savings on nursing home and long-term care expenses.
However, what about the 64% of nursing home residents who receiving Medicaid benefits?
Medicaid Qualification (What Can You Own)
- One Car
- Prepaid Funeral
- $2,000 in Extra Assets
There is also income qualification rules and different rules if you are married and one spouse stays at home and the other spouse is in the nursing home. However, we will cover these issues in future articles.
What Happens When You Are On Medicaid After Death
Surprise! Medicaid Is Not Free! After you die, Medicaid has estate recovery rights that require Medicaid to recover their costs by exercising a lien against your estate to recover cost expended on your behalf while you were in the nursing home.
However, there is a single legal strategy that a person can employ that can allow them to protect their assets for their loved ones, while maintaining the assurance that their long-term care will be covered in the event they end up in a nursing home.
To Learn More About These Legal Strategies Click Here to Download Our Free Report on Medicaid Planning and What You Can Do to Protect Your Assets from Losing It All to Long Term Care Costs!
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