Medicaid Myths: A Grain of Truth, but Mostly Myth
Many people want to know when Medicaid will cover nursing home costs, which can run $100,000 a year or more. Not many people can pay those costs out of their regular income. So, it doesn't take long to lose all one's savings. Long term care insurance is too expensive for many older people. If the person is already sick, he or she may be uninsurable.
So, folks will ask friends and neighbors how to get Medicaid to pay the cost of nursing home care. Few lawyers know this area of the law. This is a complicated area and should only be handled by an attorney who knows Medicaid law. The National Academy of Elder Law Attorneys (NAELA) can assist consumers in locating Elder Law attorneys.
There are some common "myths" that can get you in trouble. Often, they are somewhat correct, but mainly just plain wrong! This article won't go into great detail; consult an Elder Law attorney about your own situation.
Myth #1: "I have to give away everything I own to get Medicaid."
The Truth: Basically, a person is permitted to own some property, and still be eligible for Medicaid. The trick comes in knowing what is "countable" and what is "non-countable" under the Medicaid rules. For a married couple this includes, for example, the marital home that is occupied by the healthy spouse. Whether you are married or not, certain types of prepaid burial contracts are non-countable. There are many types of "non-countable property." The bottom line is, you don't need to be completely without assets to be Medicaid eligible.
Myth #2: "I can't give anything away and get Medicaid."
Myth #3: "I have to wait 5 years after giving anything away, to get Medicaid."
Myth #4: "I can keep all our marital property and my inherited property when my spouse gets Medicaid."
Myth #5: "If I put my property into my spouse's name, I will be eligible for Medicaid."
Myth #6: "Medicare will cover my nursing home bill."
Myth #7: "If I enter a nursing home as a private pay resident, I must use up my assets before I can get Medicaid."
Myth #8: "I can only 'spend-down' my assets on medical or nursing home bills."
Myth #9: "My power-of-attorney automatically has the power to take property out of my name, if I ever need Medicaid."
Myth #10: "All property transfers will cause me to be disqualified from Medicaid."
Myth #11: "I can only give away $10,000 per year under Medicaid rules."
Myth #12: "My income may have to be used to pay my spouse's nursing home bill."
Myth #13: "All of my spouse's income must be used to pay the bill if my spouse is on Medicaid in a nursing home."
Myth #14: "I can hide my assets and get eligible for Medicaid."
Myth #15: "Medicaid rules that applied to my neighbor when he went in a nursing home will also apply to me."