Medicaid can be a complex topic, and there are numerous myths and misconceptions about it. In this blog we will cover some of the common myths, and in next week’s blog we will look at some warning signs that might indicate you or a loved one needs Medicaid planning help.
There are many common misconceptions about Medicaid. Here are just a few…
Myth: I have a very good Medicare supplemental policy. I’m sure it will cover me if I ever need long-term care.
Fact: While Medicare and private Medicare supplemental policies provide good coverage for hospital care and doctor’s visits, they provide almost no coverage for long-term care at home or in a nursing facility.
Myth: If I become incapacitated, my kids will know what to do.
Fact: Don’t count on it. Unfortunately, your children will probably not know what to do. Even worse, they may not have the legal power to do anything without your specific authority. A Power of Attorney and Health Care Proxy are critical legal documents to have in place to allow your loved ones to be able to act on your behalf if you become incapacitated.
Myth: My neighbor used the Medicaid program. She can tell me what to do.
Fact: The Medicaid program’s rules are complex, which is why there is so much misinformation about them. The rules also change frequently, so frequently that even experienced Medicaid case workers lose track. Plus, every individual’s situation is different, so what works for a neighbor may not work for you.
Myth: I can protect my assets by giving them to my children.
Fact: Medicaid rules impose a period of ineligibility following a transfer of of assets to non-exempt persons. Often, children are non-exempt persons. Medicaid has a 5-year look-back period prior to an application for benefits in a nursing home. The look-back period is designed to prevent asset gifting to avoid paying for long-term care with those assets. While gifts may be a planning strategy, there may be other and better strategies available.
Do any of these myths sound familiar to you? Do you have questions about Medicaid and how to plan for it? Would you like to know how best to qualify for Medicaid? We can help. Please give us a call or email us! As knowledgeable Elder Law attorneys, we can provide the legal advice you need to achieve your long term goals.
The information provided herein does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available here are for general informational purposes only.
