ELDER LAW
MEDICAID PLANNING
and
AID AND ATTENDANCE FOR WAR VETERANS

     Nearly half of all Americans are expected to spend time in a nursing home. Yet, few can afford the high monthly costs. With proper planning, you can provide your loved one the care he or she needs in a nursing home facility without jeopardizing the financial security of your family.

HOW MUCH DOES A NURSING HOME COST?
     In Florida, nursing home costs can range from $5,000 -$15,000 per month.

HOW DO YOU PAY FOR A NURSING HOME?
     The three ways to pay for a nursing home are paying out of your own pocket, long-term care insurance, or Medicaid. Most people have difficulty paying out of pocket without quickly exhausting their assets. Long-term care insurance is a viable option if you plan early and can afford to pay the premiums.  For most people, the primary source of funds for nursing home care is Medicaid. Medicaid is a combined federal and state assistance program designed to cover nursing home expenses for qualified individuals.

WHO IS ELIGIBLE FOR MEDICAID NURSING HOME BENEFITS?
     To qualify for Medicaid coverage for nursing home care, an individual must be:

• Age 65 or over, blind or disabled
• A U.S. citizen or qualified alien
• Medically in  need of a nursing home
• Have limited income or an income trust
• Have limited non-exempt assets

WHAT OTHER QUALIFICATIONS
ARE REQUIRED?

• Other qualifications include:
• Placement in a Medicaid approved nursing home
• Referral by a physician
• Assessment by Dept. of Elder Affairs CARES unit

     If assets have been transferred to someone other than a spouse for less than market value, then a disqualification period will be imposed and expire.

WHAT ARE THE INCOME AND ASSET LIMITS?              
     To be eligible for Medicaid, an applicant’s monthly gross income cannot exceed $1,869. If the income exceeds that amount, some of the excess income may be diverted to a spouse if the applicant is married, or put into a qualified income trust.

     Some assets such as a home, car, burial plans, and some life insurance policies are not counted by Medicaid to determine eligibility. Other assets are counted. The counted assets must not exceed $2,000 to become eligible for Medicaid nursing home benefits. Assets over that amount must be used to pay for nursing home costs or used to improve exempt assets that are not counted. Some assets may be transferred to a spouse as long as the spouse’s assets do not exceed $101,640 during the application process.

     There are additional strategies for preserving assets of the applicant for family members. However, beware. An applicant cannot simply give away assets to become eligible for Medicaid. Giving away assets will create a penalty period for the applicant during which time Medicaid will not pay for nursing home care.

WHAT IS THE ADVANTAGE OF PLANNING FOR MEDICAID ELIGIBILITY?
     Careful planning, whether in advance or in response to an unanticipated need for care, may allow an individual to preserve some assets for their spouse and children. Without planning, an individual risks spending all the family money on nursing home care until all the family assets are depleted impoverishing well family members still at home.

AID AND ATTENDANCE FOR WAR VETERANS
     The War Veterans Aid and Attendance pension program is available to qualified veterans and their spouses who need a caregiver on a regular basis to perform basic functions of everyday life while living at home, in an assisted living facility, or in a nursing home. This benefit is available to veterans who served during wartime. A veteran is eligible for up to $1,519 per month, while a surviving spouse is eligible for up to $976 per month. A couple is eligible for up to $1,801 per month. Additional money is available if the veteran has dependent children living at home. The veteran cannot have assets in excess of $80,000, excluding home a and car.