When it comes to nursing home care and assisted living, one must be aware of Medicare and Medicaid. Most people have the misconception that both are the same thing. However, only elder law attorneys Virginia Beach will tell you otherwise.
This blog will discuss how older adults can safeguard their assets and still pay for assisted living or nursing home care.
When it comes to preserving your property and funding for long-term care bills, understanding the difference between Medicare and Medicaid becomes essential.
Medicare is similar to health insurance. Medicare pays the expense if you have Medicare and are admitted to the medical facility for a cardiac arrest, arthroplasty, or other treatable medical conditions. Medicare will not cover all of these costs, but it will cover the majority of them. And, presumably, you have some kind of supplementary insurance in addition to your Medicare protection. When it comes to extended care, Medicare is relatively limited in what it will cover.
Who pays for long-term care if Medicare doesn’t cover it? You can either pay for it out of your current assets and income, or you can use a long-term care insurance policy you already have. If you’re a military vet or the widow of a veteran, you may be eligible for VA benefits to assist with long-term care costs. Those VA benefits are obviously helpful, but they won’t cover all of the nursing home expenditures.
So, who compensates for your long-term care if you don’t have the resources or are seeking to shield those possessions from the nursing home? This is where Medicaid comes to the rescue.
But what is Medicaid, and how does it work? How can one make the most out of the Medicaid benefit?
Medicaid is a federally funded program that is operated by each jurisdiction – Virginia, Florida, or whichever state you are. Each county has its own set of requirements for qualifying. You can’t make more than a specific amount of money, for example, or you won’t be qualified for Medicaid.
However, if your earnings exceed that threshold, don’t be concerned. We can set up a certain form of trust for you that would permit you to qualify for Medicaid. Don’t be concerned if your spouse is in a care facility. An elder attorney can help your spouse qualify for Medicaid while safeguarding your house and possessions.
There are other asset restrictions that might influence your Medicaid qualification. There are exemptions to the asset restrictions, just as there are to the income criteria, which can be exploited to increase your chances of qualifying for Medicaid. Most individuals believe that an IRA or 401k is a tax-deductible asset, but this isn’t always the case. The mandatory minimum payments that you may be collecting are deducted from your income, but the property itself is not taken into account. In some states like Georgia, this is the rule. Other states may have different laws.