Good to Know
In our last blog, we identified three ways to manage the risk of long-term care expenses:
- Self-insurance for wealthy clients
- Private long-term care insurance for the middle class
- Medicaid for the desperately poor
Today, our focus turns to a deeper understanding of Medicaid. Conventional wisdom holds that most Americans cannot qualify for Medicaid Long-Term Care insurance (LTCi). Why? Because most applicants have “too much wealth and income” to meet Medicaid’s stringent requirements. In this blog, we’ll show you how such clients may be able to plan ahead for Medicaid eligibility.
But first, a quick disclaimer followed by an overview:
Here are the two big takeaways:
- Always consult an experienced elder care special specialist in advance, and
- The earlier the planning is started the more options the applicant will have.
Stay tuned! In our next blog, we’ll illustrate the opportunities and traps of applying for Medicaid LTCi for a married applicant.
1A number of states allow compliance with the income limits through contribution of excess income into Qualified Income Trusts. Contributions to the trust must be spent on the patient’s long-term care and medical expenses.
2 Look-back periods of as little as 30 months may apply in certain states.