Before we look at the Medicaid Community Spouse Resource Allowance, we should provide some background information about the relevance of the Medicaid program in general.
You are probably aware of the fact that Medicaid is a government run health insurance program that exists to help people with very limited financial resources. As a working person, you are paying into the Medicare program, and you will qualify for Medicare when you reach the age of 65. You would not need Medicaid if you have Medicare coverage, and you wouldn’t be eligible if you retired with resources.
The reason why Medicaid does become relevant to many seniors who were qualified for Medicare is because Medicaid pays for long-term care. Medicare does not pay for living assistance, because it is considered to be custodial care rather than medical or convalescent care.
The majority of elders will someday need help with their activities of daily living, and long-term care is very expensive. As a result, a many seniors ultimately seek Medicaid eligibility.
Rights of Healthy Spouse
Since Medicaid is a need-based program, there is a limit on countable assets. This limit is just $2,000, so people typically give assets to their loved ones before they apply for Medicaid so that they can stay within this limit.
However, if you are married and you need long-term care while your spouse is still capable of independent living, your spouse can keep half of the shared countable assets. This is called the Medicaid Community Spouse Resource Allowance.
In the state of Indiana, the minimum Community Spouse Resource Allowance is $23,844 during the current calendar year. This means that the community spouse could keep no less than $23,844, even if this is more than half of the shared countable assets. The maximum Community Spouse Resource Allowance in Indiana in 2015 is $119,220.
Obtain Detailed Information
If you were to wind up paying for long-term care out of your own pocket, the expenses could ultimately consume everything that you intended to leave behind to your loved ones. When you consider the stakes, you can see why you may want to aim toward Medicaid eligibility.
As you might imagine, Medicaid rules and regulations are rather complex. If you would like to obtain detailed information about Medicaid as it applies to long-term care for elders, our firm can help. We offer free consultations, and you can send us a message through our contact page to set up an appointment: Indianapolis IN Elder Law Attorneys.
At the consultation we will get to know you, and we will become apprised of your personal situation. All of your questions about Medicaid planning will be answered, and if you choose to go forward, we will help you create a custom crafted plan that leads to a safe and secure future.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.
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