If you have to pay for long-term care out-of-pocket when you are a senior citizen it can have a serious impact on your legacy. The annual statistics that are provided by the MetLife Mature Market Institute are indicating a steady rise in long-term care costs of approximately 4% to 5% per year, but as things stand right now the costs are extraordinary.
It is not uncommon for senior citizens to incur long-term care expenses in the hundreds of thousands of dollars. Medicare does not pay for long-term care so this is something that you have to take personal responsibility for as you are planning ahead with the future in mind.
A lot of seniors rely on Medicaid to pay for their long-term care expenses. Medicaid is a joint federal/state program that is theoretically intended to provide low income people with a health care safety net. Because of this there is an upper financial resource limit of $2000; if your resources exceed this amount you do not qualify for the program.
So you will never be able to qualify for Medicaid, right? That is not exactly true for many people who do in fact have resources that exceed this figure because some of your most valuable possessions don’t count. These include your home, your vehicle, and other valuables.
The rules governing Medicaid are rather complex, including a five-year look back period. This involves a penalty if you give away assets within five years of applying for Medicaid in an effort to stay within the upper resource limit.
Medicaid can be a welcome solution for many people but you have to plan ahead carefully to qualify for the program while retaining much of what you own. To discuss the matter with an expert, simply take a moment to set up an appointment to speak with a good Cleveland OH elder law attorney.