There are three things that you should know about long-term care when you are planning ahead for retirement: It is extremely expensive, most people will need it, and Medicare does not pay for it. This is a very unappealing trifecta.
The solution for many people is Medicaid. This is also a government health insurance program, and it will pay for long-term care.
That’s the good news. The difficult part is the fact that you cannot qualify unless you have very limited resources. There is an upper asset limit that stands at $2000 for an individual in most states.
Some of the things that you own are not counted when Medicaid is determining your eligibility. Your home does not count, but there is an equity limit of $543,000 in Pennsylvania in 2014. You can also maintain possession of one vehicle, your wedding and engagement rings and heirloom jewelry, your personal effects, and your household items.
In-Home Care
When the you think about long-term care, you probably envision nursing homes and assisted living communities. Many people do reside in these facilities late in their lives, but in-home care is a possibility for some seniors who need living assistance.
There are a number of benefits that you gain if you can receive the care that you need at home. Clearly, most people would probably prefer to remain within familiar surroundings. Being uprooted when you are a senior citizen can be quite disconcerting.
Plus, you may not need around-the-clock help with your activities of daily living. With in-home care, you can get the level of assistance that you need when you need it.
Clearly, in-home care is going to be much less expensive than full-time residence in a nursing home or assisted living community, and this is another advantage.
To save money the powers that be want to encourage people to remain at home if it is at all possible. As a result, there is a program called the Medicaid Home and Community-Based Services waiver program. It is called a waiver program because the asset and income limits are not as stringent as the limits that are in place for full Medicaid coverage.
This program will help with in-home care costs if you can meet the eligibility requirements.
Free Report
You should certainly know all that you can about the Medicaid program if you want to be prepared for future long-term care costs. We have a valuable resource that you can access through this website if you want to obtain some in-depth information.
We have prepared a series of special reports that cover virtually every area of estate planning and elder law. One of our reports is dedicated to Medicaid planning.
This report is being offered free of charge at the present time, and you can access your copy through this page: Philadelphia PA Medicaid Planning.
Joe Masiuk, Estate Planning Attorney
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