Long Term Care Medicaid Myths
Debunking 4 Common Myths About Long-Term Care Medicaid
Misinformation about long-term care Medicaid can lead families to make poor financial decisions when they are most vulnerable. It is a complex system, but understanding the truth behind the common myths is the first step toward effective planning. Let’s debunk four of the biggest misconceptions we encounter.
Myth #1: “You have to be poor to qualify for Medicaid.”
The Truth: This is one of the most persistent myths. While some Medicaid programs are for those with very limited income and assets, the rules for Long-Term Care Medicaid (for nursing facility care) are different. This program is specifically designed to help middle-class families afford the staggering cost of care without having to lose everything they’ve worked for. With the guidance of an experienced elder law attorney, it is often possible to qualify for significant financial assistance while legally protecting a substantial portion of your assets from both the cost of care and future estate recovery claims.
Myth #2: “You should give everything away years in advance.”
The Truth: While it’s true that gifts made more than five years before a Medicaid application are not penalized, gifting your assets away is a risky strategy. It involves a complete loss of control and can have unintended consequences related to taxes and your own financial security. Proactive planning is wise, but simply giving everything away is rarely the best approach.
Myth #3: “If you need care now, it’s too late to plan.”
The Truth: This is incorrect and can prevent families from seeking help when they need it most. Even if a person is already in a nursing home, there are legal, ethical strategies that can be implemented to protect assets. An experienced elder law attorney can often help families in a “crisis” situation make strategic transfers that do not violate Medicaid’s rules, preserving a significant portion of the family’s assets.
Myth #4: “Medicaid will take your home.”
The Truth: You are not required to sell your primary residence to qualify for Medicaid; the home is typically an exempt asset during your lifetime. The real threat is Estate Recovery, which is the state’s right to make a claim against your probate estate after your death to recoup the costs of your care. However, with proper planning, the home and other assets can often be titled in a way that allows them to pass directly to your heirs, completely avoiding probate and, therefore, avoiding any claim from Estate Recovery.
Get the Facts from a Professional
Medicaid’s rules are complicated, and navigating them on your own can be perilous. If you or a loved one are facing the possibility of long-term care, don’t rely on myths or hearsay. Our attorneys can help you understand the facts and create a plan for Medicaid eligibility to protect your family. Call our office at (919) 256-7000 to schedule a consultation.