The Benefits of Medicaid Planning for Older Adults
The increasing medical needs and support services required as you get older can quickly drain your finances. Even if you worked hard for years and have a considerable amount saved, it may not be enough to meet the high costs of home health care and assisted living. For older adults, Medicaid planning offers a solution to this problem. It ensures your personal needs are provided for while protecting your loved ones and your future financial security.
How Medicaid Planning Helps Older Adults
The older you get, the more likely you are to require extra help in terms of maintaining your health and in performing daily personal or household tasks. According to the New York Department of Financial Services (DFS), getting home health care and support services on even a part-time basis can run over $20,000 per year. If you require assisted living or nursing home care, you could end up spending $150,000 or more annually.
Medicaid planning helps to offset these expenses, preventing you from having to sell property or drain bank accounts. It involves transferring assets into an NYSARC or other types of trusts. While you can still access these funds and use them for daily living costs, gifts, and other expenses, it shields them from being counted as income. This helps you qualify for Medicaid community-based services in New York, which include:
- In-home care, which includes medical and non-medical services;
- Adult daycare, which can help meet both your physical and social needs;
- Assisted living facilities, which allow you to maintain a level of independence while receiving support services;
- Nursing home care, which can provide for your needs when medical conditions prevent you from living on your own.
It is important to note that Medicaid has a five year look-back period, which could delay your eligibility. Planning should begin early, before additional help is needed.
How Medicaid Planning Benefits You and Your Loved Ones
The Center for Budget and Policies Priorities reports that more than seven million older adults rely on Medicaid for long term care and other support services. Among the many benefits the program provides include:
- Fills the gap in Medicare coverage and reduces the amount you pay out of pocket for doctor visits, medications, and other expenses;
- Helps seniors achieve important goals in terms of aging in place, ensuring they get the support services they need and reducing their reliance on friends or family members;
- Protects your spouse by alleviating the high costs of nursing home care and ensures any funds you do have can go to meet their needs;
- Protects your beneficiaries, ensuring your hard-earned income goes toward their inheritance rather than being depleted by long term care costs.
Let Us Help You Today
When it comes to protecting your assets and planning for your future, Cavallo & Cavallo provides the trusted legal guidance you need. To discuss your options, call or contact our Bronx & Westchester Medicaid & nursing home attorneys online and request a consultation in our office today.