When you are looking ahead toward your senior years, you should be aware of potential long-term care costs. Most people over the age of 65 are going to require long-term care at some point in time. Medicare does not pay for custodial care, and long-term care is extremely expensive.
In the state of Indiana, the median annual cost for a private room in a nursing home is over $85,000 according to Genworth Financial. People sometimes spend multiple years receiving nursing home care, so you could be looking at a very large expense late in your life.
Medicaid is a government health insurance program that is jointly administered by the federal government along with each state government. This program will pay for long-term care, but you have to meet the eligibility requirements. Because it is a need-based program, there is an upper asset limit of $2,000 for an individual.
This is a small number, but some of your belongings do not count when Medicaid is tallying up the value of your assets. Your home does not count, but there is an equity limit of $543,000 in Indiana in 2014.
To qualify for Medicaid, you could give assets to your children before you submit your application. However, you must complete this spend down at least five years before you apply, or your eligibility will be delayed.
Some people who need assistance with their activities of daily living would like to remain in their homes. This is understandable, because people become attached to their homes. There is a sense of familiarity, and this can be very important, especially when you have lost family members along the way.
There are in-home care givers who will come to you if you need living assistance. They are not particularly inexpensive, but in-home care is typically going to be less expensive than full-time residence in a nursing home or assisted living community.
If you need assistance paying for in-home care, you may qualify for the Home and Community-Based Services waiver program. This program is called a waiver program because the income and asset limits are relaxed so that more people can qualify for coverage.
In the state of Indiana, the median annual cost for a full-time home health aide is over $45,000 at the present time, so the Medicaid Home and Community-Based Services waiver program can certainly help if you decide to go this route.
Learn More About Medicaid Planning
If you would like to learn more about long-term care and the Medicaid program, download our special report. This in-depth report is being offered free of charge, and you can obtain access through this website.
To get your copy of the report, click this link and follow the simple instructions: Indianapolis IN Medicaid Planning.
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.