Many seniors are stunned after they notice they could must depend on Medicaid to assist them cowl the customarily exorbitant prices related to long-term care. Much more worrisome are the eligibility pointers that embody each revenue and asset limits. These pointers can put your retirement nest egg in danger if you end up in want of the advantages provided by Medicaid, but you didn’t plan forward. Luckily, not all belongings are counted when figuring out should you qualify for Medicaid in Connecticut.
Why Would I Have to Qualify for Medicaid?
Consultants inform us that if you’re near retirement age proper now (age 65), you stand near a 70 % probability of needing some sort of long-term care (LTC) providers earlier than the tip of your lifetime. In case you are married, your partner shares the identical odds. If both of you leads to nursing dwelling care, the price of that care may put your retirement nest egg at substantial threat except you deliberate forward by together with long-term care and Medicaid planning in your complete property plan.
Nationwide, the common price of a yr in LTC for 2017 was over $80,000. In case you are a Connecticut resident, nevertheless, you’ll be able to count on to pay among the highest LTC prices within the nation. That very same yr, the common yearly price for a personal room in an LTC facility was $162,060 in Connecticut. With a mean keep of three years, your complete LTC invoice may simply close to $500,000 – and that’s should you wanted care at present. Naturally, with yearly that passes the price of LTC will improve.
Like many seniors, you might depend on Medicare to cowl most of your well being care bills when you retire, you gained’t have the ability to flip to Medicare for LTC bills as a result of Medicare gained’t cowl them. Neither will most medical health insurance insurance policies which is why over half of all seniors at the moment in an LTC facility depend on Medicaid for assist paying their invoice. For Medicaid to assist although, you need to first qualify for advantages.
Will I Qualify for Medicaid?
As a result of Medicaid is a “needs-based” program that’s supposed to assist low-income people and households with well being care bills, this system makes use of each revenue and belongings limits when figuring out eligibility. An applicant can not personal countable sources (belongings) valued at greater than the restrict or the applying will likely be turned down. As a person applicant, your countable sources can not exceed $2,000. For a married couple, the restrict is $3,000. Luckily, some belongings are exempt from consideration when figuring out eligibility. In Connecticut, widespread exempt belongings embody:
- One dwelling as much as an fairness restrict of $858,000 IF you’re planning to return to the house OR a partner, a toddler beneath 21, or a disabled individual resides in it.
- One automobile
- Burial plots
- Trusts for disabled people beneath 65, which qualify beneath 42 USC 1396p(d)(4)(A)
- Annuities that meet sure standards
- Transfers of belongings to disabled kids and to “caregiver kids” who meet sure standards, don’t create a penalty.
In case your non-exempt belongings exceed the restrict, your software will likely be turned down and you’ll be required to “spend-down” these belongings earlier than Medicaid will approve your eligibility. In actuality, this implies you’ll have to use these belongings to cowl your LTC bills till the worth of your belongings has diminished to the purpose the place Medicaid finds you eligible. Moreover, Medicaid’s five-year “look-back” rule prohibits you from transferring your non-exempt belongings on the final minute in anticipation of the necessity to qualify for Medicaid. The important thing, due to this fact, to defending your belongings and guaranteeing that you just qualify for Medicaid is to incorporate Medicaid planning in your complete property plan lengthy earlier than you end up in want of assist paying your LTC invoice.
Contact Connecticut Medicaid Planning Attorneys
For extra data, please obtain our FREE estate planning worksheet. When you have further questions or considerations about qualifying for Medicaid, contact the skilled Connecticut Medicaid planning attorneys at Nirenstein, Horowitz & Associates, P.C. by calling (860) 548-1000 to schedule an appointment.