Elder Law

The Medicaid Application Process

In order to qualify for Medicaid an applicant must require nursing home level of care. Oftentimes a diagnosis alone will not result in this determination and arrangements should be made to private pay for home care or a move to an assisted living facility, memory care facility or continuing retirement community. The best strategy, if possible, is to fund your care. This will give you options for choosing the best facility to move into. However, sometimes our plans are derailed and a hospitalization turns into an admission into a skilled nursing facility without options to fund your care.

The terms Medicare and Medicaid are often confused for each other. Medicare is insurance that covers short term stays in a skilled nursing facility or nursing home, such as for rehab. Medical Assistance or Medicaid is the benefit that pays for long term care. If your loved one is admitted to a nursing home, there will come a time when Medicare stops paying. If a safe discharge home is not possible, the patient may have to apply for Medicaid.

Medicaid Spend Down and Medicaid Qualified Annuities

A family in crisis needs a firm with a gentle hand who can handle the Medicaid application process without delay. If a couple has too many assets to qualify for Medicaid, you can reduce assets through a Medicaid “spend down.” We have the knowledge and experience needed to develop the best strategy to protect a spouse living at home by preserving assets for the benefit of the family. Lawful ways to spend down for Medicaid approval would be paying off debt, buying a car, renovating the home and prepaying funeral expense. If there aren’t enough expenses to spend down, there is an option to create a Medicaid qualified annuity to provide an additional income stream for the spouse not in residential care. 

To discuss Advanced Medicaid Planning, a Medicaid spend-down, Veteran’s Benefits or other Elder Law issues, please book an appointment using the link above.

Advanced Medicaid Planning

An effective estate plan should include well-drafted financial Powers of Attorney, including both the Maryland Statutory Form Personal Financial Power of Attorney and General Durable Power of Attorney.  If appropriate, language authorizing gifts and transfers should be included to enable the agent to accomplish necessary Medicaid eligibility planning. It is important to create these documents while you have legal capacity to sign. If you do not have the necessary documents, your family may have to petition for guardianship, which is expensive, time consuming and demeaning. Maintain your dignity and independence longer with a proper plan.

Time is of the essence when planning in advance for Medicaid qualification. If your loved one receives a diagnosis that will likely result in the need for long-term care, consider transferring your assets to an Irrevocable Trust, such as a Medicaid Asset Protection Trust. Any transfer in order to qualify for Medicaid is subject to a five-year look back. We would discuss the various options and ensure that the goals are met and the benefits of the trust meet your needs.