Qualifying for Medicaid LTC Benefits Could Get Tougher

[Northeast Agent]

Qualifying for Medicaid LTC Benefits Could Get Tougher | ThinkAdvisor

Home equity exemptions could fall, and lookback periods for asset transfers could grow to 20 years.

www.thinkadvisor.com

Moses said the current Medicaid-based financing system is unfair, encourages high-income people to hide assets to qualify for public benefits, and has created shortages of care and problems with quality.

Moses called for Congress to make Medicaid LTC benefits eligibility rules simpler and more consistent on the state level; reduce people’s ability to keep assets out of Medicaid LTC benefits eligibility calculations; and lengthen the “lookback” period for Medicaid reviews of an older patient’s transfers of assets to loved ones to 20 years, from five years today.

 

[Dale M Krause]

As someone practicing elder law for over 30 years, I have observed that the Medicaid program has become increasingly restrictive. Although the last significant change happened in 2006 through the Deficit Reduction Act, I do not anticipate the program moving towards a 20-year lookback. The current five-year lookback can be challenging for most Medicaid applicants, who must support all their activities during that period.

Regarding long-term care insurance (LTCI), I do not believe everyone should forego it and wait for Medicaid. If you want the best possible long-term care when you need it, such as home healthcare, an LTCI plan is the only way to ensure you receive it. Medicaid does provide long-term care support, but only to those residing in a nursing home.

Securing the long-term care you need when you first need it significantly reduces the likelihood of needing long-term care in a nursing home. Families without LTCI often delay long-term care when it's first required due to financial concerns or risking their inheritance. This underscores the importance of planning.

I strongly recommend that you seriously consider acquiring LTCI to safeguard your long-term care needs. This investment will not only provide you with peace of mind but also ensure that you receive the best possible care when you need it the most. Please don't wait until it's too late. Take action now to secure your future.