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The 2 Ways to Pay
Self Pay
If you have assets you must spend down until you reach Medicaid qualification.Depending on the type of asset, you may want to liquidate investments that have capital gains so you can write gains off on taxes. Also Medicaid does not pay Home Health Care so this will also be self pay
Medicaid
When the institutional person has spent down to Cms guidelines they will qualify for assistance. For a single person this is $2000. A couple is allowed to keep the spousal impoverish amount but loses all income of institutionalized spouse
What is Medicaid Planning?.
Very specialized type of planning where someone who can not get insurance or does not have enough assets to justify buying long term care insurance works within the guidelines of Medicaid to conserve assets for spouse or children and still qualify for Medicaid benefits. Typically someone has been diagnosed or suffered an illness where they need care and now realize their Medicare policy does not cover Custodial care and they will pay 4 to 10 Thousand dollars a month for care until estate is depleted.
Possible Solutions:
Depends on a couple of factors: If their is a spouse,amount of assets, type of assets, state where they will receive care. Length of expected illness
Warning: Medicaid rules change constantly. Contact a competent advisor
