Latest reports have found out that the biggest fear of elderly Americans is that they might end up getting admitted to nursing homes. This not only relates to the loss of their independence but also has a tremendous financial tag attached to it. Prior planning can ease off this financial burden.
Based on the level of care needed by a patient and his location, Nursing Homes can cost between $40,000 and $1,90,000 a year. most seniors who have not saved enough for their retired life run out of their savings while paying for their medical costs. Later on, they qualify for Medicaid to recoup the cost. If you have been wondering about hiring a New Jersey Medicaid planning lawyer to know the basics of the Planning strategies, here’s help for you.
Medicaid – What is it?
A combined state and Federal program that assists in paying for custodial, medical, and long-term care for people with limited resources and income is known as Medicaid. This program offers benefits that are not usually covered by Medicare, like personal care services and Nursing Home care services. Medicaid was first created in the year 1965.
Who are the people who can qualify for Medicaid?
Each year, the Federal government comes up with a publication of numbers on the guidelines of Federal poverty. Family size and income are the two main factors that determine whether or not a person can qualify for Medicaid. There is no fixed percentage of poverty level that is required for being eligible for Medicaid as this number varies from one state to another.
Seniors who apply for Medicaid coverage in nursing homes are often called Medicaid Long Term and they have to fill out a Long-term Care Addendum that takes into account the money given away over the last five years.
Start off with Medicaid planning as soon as you can
If you are on the verge of retirement or you are already retired, this is the ideal time to engage in Medicaid planning. The rules and regulations related to the eligibility of Medicaid are complicated. Ideally, the best time to start off with medical planning is 5 years before you think you might need a Nursing Home facility for yourself. Never delay your medical planning as this can wreak havoc on your financial life. The longer you wait to involve yourself in Medicaid planning, the more you risk your financial future.
You have to demonstrate a financial emergency to qualify
As already mentioned before, Medicaid is a need-based benefit program. This clearly means that you have to show that you have $2000 or less than that in countable assets, excluding your home and vehicle in order to qualify for the benefits of Medicaid. Each state has a different maximum income level for qualification but all of them have strict Eligibility requirements.
In order to submit your Medicaid application in a proper way, it is better to appoint a Medicaid planning lawyer as they can cut through the bureaucracy and red tape in the state Medicaid office.