Don't Make These 7 Medicaid, Long Term Care Planning Mistakes

Don’t Make these 7 Medicaid/Long-Term Care Planning Mistakes

 Proper planning is required to obtain Medicaid assistance. When people encounter chronic illnesses and face depleting financial resources, consulting with a certified elder law attorney will help you avoid long term care planning and asset preservation pitfalls:

1. Transferring the house: People who transfer their home to their children will find themselves ineligible for Medicaid. The Medicaid agency can look at your financial records and gifts for the prior 5 years. The house does not count as a resource if it is valued at under $536,000.00.

2. Making gifts: Gifting will delay you receiving Medicaid. If you make gifts after you become ill you are going to have a very difficult time convincing the Medicaid agency that you did not do it just to become eligible for Medicaid.

3. Buying an annuity: An annuity is not the right answer for everyone especially single people or widows/widowers.. Since 2008 federal law requires the annuity to name the state Medicaid agency as beneficiary (unless you have a spouse or disabled child). This means any remaining value of the annuity will be paid to the Medicaid agency, not to your family.

4. Using a family member's social security number: If you have a joint account with a family member and only use that family member's social security number, that will not avoid the account being a counted resource by Medicaid. As a joint owner either half or all of the account will be treated as yours (if the other joint owner did not contribute anything to the account you may be treated as owning 100%).

5. Filing an application when you have excess resources: Your application will be denied if you have more than $2,000.00 for single people or more than $115,920.00 if married in countable resources. Learn how special needs trusts, pooled trusts, rental property, spousal refusal and other planning options can help you qualify and preserve assets.

6. Filing an application when you have too much income: Your application will be denied if your gross monthly income in Florida exceeds $2,163.00 (includes social security retirement, pensions, IRA distributions). You need an attorney to draft a qualified income trust before you apply otherwise it will delay approval and you will have to pay privately for your care.

7. Filing an application without legal representation: Don't file a Medicaid application without first having your situation reviewed by a board certified elder law attorney. I can spot potential problems and tell you how to avoid them which can save you time and money and give you peace of mind.

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Tipe for Choosing a Nursing Home for Your Loved One

Tips for Choosing a Nursing Home for Your Loved One

While no one ever envisions themselves moving to a nursing home, sometimes a change in medical condition and finances may lead to that as an option.  Whether you are shopping for a car or choosing a nursing home, you want to do your homework.  If you do not know anything about nursing homes it can be a challenge to know what questions to ask or, research. 
When looking at nursing homes here are some tips and suggestions for you to use before you sign an admissions agreement:

1.  Visiting Potential Nursing Homes: While you may want to go during normal business hours for a tour consider going back a second time later during the afternoon or early evening. Pay close attention to the number of staff compared to the number of residents (is the facility properly staffed).  Watch to see how long it takes a staff member to respond to a resident ringing the call bell.  If you see a resident's family member visiting, ask them if they would be willing to answer some questions about their loved one's experience and the quality of services provided.

2.  Avoid Financially Guaranteeing Payment: If your loved one is unable to sign the admissions agreement and you are signing beware of language that may make your personally liable for payment. Many nursing homes still use language such as 'responsible party.' If you see those words cross them out before you sign.  It is a violation of federal law for a nursing home to condition admitting a person on someone else guarantying payment.  Before signing an admissions agreement have it reviewed by an attorney for this and other reasons.

3.  Review the Facility's Ratings: You can read inspection reports that are posted by the Agency for Healthcare Administration. The reports will tell you whether a facility was cited, for what and if it was corrected, and other concerns.  Click here to run a search and compare inspection ratings.  The Center for Medicare & Medicaid Services (CMS) has also developed a rating system for nursing homes. You can access it by clicking here. CMS also has helpful tips and a checklist you can use.
Be an informed consumer so that you can make the best decision for your loved one.

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