Get ready to secure your future with the ultimate guide to Medicaid planning. Learn how to qualify for Medicaid benefits, protect your assets, and get relief from high long-term care costs. Medicaid might sound like a complex process, but it may be easier to understand than it seems. It is especially easy to approach the Medicaid process with help from a qualified elder law attorney who understands how this all works. Be sure to team up with a qualified lawyer as you approach your Medicaid journey.
Understanding Medicaid
Medicaid is a government program sponsored by both state and federal authorities. Only certain people qualify for Medicaid, and it pays certain aspects of their healthcare costs. Even though this is a federal program, individual states have the freedom to enforce and organize Medicaid based on their specific goals. This means that when you approach the Medicaid planning process, you need to keep your state’s unique guidelines in mind.
The Difference Between Medicare and Medicaid
Medicare is not the same as Medicaid, and the former is designed for people who are either 65 or older or those who have been on Social Security Disability for over two years. Medicare is divided into four categories:
- Part A: Part A covers hospital expenses, including inpatient care in both hospitals and nursing facilities. The limit is 100 days, and it may provide some hospice care as well.
- Part B: Part B provides additional medical coverage, including doctor’s visits, outpatient care, medical equipment, and home health care.
- Part C: Also known as “Medicare Advantage,” Part C gives people the choice to use Medicare benefits through private insurance plans rather than through Parts A or B.
- Part D: Part D specifically covers prescription drugs.
While Medicare is available for people from all walks of life, Medicaid is specifically geared towards people with limited income – including seniors, disabled individuals, and children.
Filling Out Your Application
As you apply for Medicaid, you will need to carefully fill out your application. Making mistakes could delay your application. Mistakes may also lead to denied applications. To raise your chances of success, be sure to remember all supporting documentation. Supporting documentation may include the following:
- Documentation of your assets
- Documentation of your income
- Documentation of your living expenses
- Any transfers during the five-year lookback window
But why is this documentation important? Because in order to qualify for Medicaid, you must show that you are eligible. Remember, this form of healthcare funding is only available to those in need. If your income or assets are too high, then you will be rejected.
That being said, there are a few “exempt assets” that will not be used to calculate your eligibility for Medicaid. These assets include:
- Your home
- Personal belongings
- One vehicle
- Medical devices
- Burial spaces
- Funeral contracts
- Cash value of life insurance
Note that there may be certain limitations on these exemptions. For example, your home may no longer be exempt if you now live in a nursing home and you have no real plan to return. Your personal belongings may only be exempt under a certain cash value limit, usually only a few thousand dollars. Depending on the state, your life insurance policy may only be exempt if it has a cash value under a certain limit.
Keep in mind that even though Medicaid is geared towards low-income individuals, you do not need to intentionally impoverish yourself just to qualify. These exemptions ensure that you can still enjoy a relatively high standard of living while qualifying for Medicaid. In addition, there may be more appropriate sources of healthcare funding if you have a certain level of wealth. Speak with your lawyer to learn more about your options.
One common mistake is to give away most or all of your assets to your children or relatives in order to qualify for Medicaid. This is a very risky strategy, and you should always speak with your lawyer before you do anything too hasty. Medicaid rules can be very strict, and you need to be careful about the look-back period. As the name implies, this is how far back Medicaid authorities will examine your financial history in order to determine eligibility. Giving away assets should be done in a proper manner, ideally with advice and guidance from appropriate lawyers.
What if My Application is Denied?
Even the most carefully planned applications may be denied in certain situations. But there is no sense in giving up hope at the first sign of trouble. You can still approach your Medicaid process with efficiency even after a denial. Sometimes, these denials are down to processing errors, and you might not have done anything wrong.
Sometimes, the application may be denied because you missed a certain deadline or forgot to sign one of your forms. It happens. The good news is that you can work with a lawyer to request a hearing about the matter. During this hearing, you can explain why your application should be approved. With help from a qualified elder law attorney, your chances of success are much higher.
With all that said, it makes sense to avoid a denied application if at all possible. This is why you should take your Medicaid planning process as seriously as possible. If you approach this process carefully, you can avoid preventable mistakes and ensure a smooth application process. It is always better to do things right the first time than to back and fix mistakes. Consider working with an elder law attorney from the very beginning.
Where Can I Find a Lawyer Who Can Help with Medicaid Planning?
If you have been searching for a qualified attorney who can help with Medicaid planning, look no further than the Elderly Care Law Firm. While internet research serves as a positive first step for those approaching the Medicaid process, nothing can replace the accuracy and personalization of advice from a real lawyer. Book your consultation today, and you can get started with an effective action plan right away.
