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Our Michigan Elder Law Attorneys Reveal the Truth About 7 Medicaid Myths That Could Derail Your Eligibility
Our Michigan Elder Law Attorneys Reveal the Truth About 7 Medicaid Myths That Could Derail Your EligibilityQualifying for Medicaid if you need long-term care can be confusing, especially because there are quite a few persistent Medicaid myths that simply aren’t true. Believing false information about Medicaid can derail your efforts to protect your assets if you need to apply for Medicaid to help fund care in a nursing home.
At Estate Planning & Elder Care Firm of Michigan, our experienced Medicaid planning and elder law attorneys in Howell and Clinton Township are here to debunk false information about Medicaid. We can also help you with your Medicaid planning to help you qualify for Medicaid while keeping eligible assets and getting the quality care you need.
Seven Michigan Medicaid Planning Myths Debunked
While it’s never a good idea to follow misconceptions, it can be disastrous when you are making Medicaid planning decisions. You could lose assets you might otherwise be able to keep or find yourself ineligible for Medicaid when you need it most. Here are the top seven myths clients often ask our Medicaid planning legal team about that simply are not true.
Myth #1: Medicare Will Pay for Your Nursing Home Care
Many people believe that their Medicare or Medigap insurance will pay for their nursing home bills, but this is incorrect. Medicare will only pay for up to 100 days of skilled care at a nursing home immediately following hospitalization in specific circumstances.
To qualify for this benefit, you must have been hospitalized for at least three days and be referred to a skilled care facility when you’re discharged. In addition, your medical condition will be evaluated throughout your stay at the nursing home to determine if you remain eligible for Medicare to continue paying for your care up to the cap of 100 days.
Myth #2: You Have to Get Rid of Your Assets to Qualify for Medicaid
This myth is untrue, and mistakenly following it can cause many problems. When qualifying for Medicaid when going into a nursing home, you can have up to $2,000 in assets and also keep specific types of property. For example, the types of property a person can often keep in this situation include:
- Your home, even if it’s unlikely you will be able to return
- A vehicle
- Certain types of prepaid funeral contracts and burial plots
- Your personal property
- Certain annuities
You may be able to spend down non-exempt assets that you would otherwise lose when qualifying for Medicaid. Our experienced Medicaid planning lawyers can advise you on what you could spend and how to do it properly. In addition, if you are married, we may be able to protect all of your assets.
Myth #3: You Can Hide Assets and Become Eligible for Medicaid
Hiding assets to try to qualify for Medicaid is not only a bad idea, but it is also a crime. If you try to do this, you may have to repay Medicaid for any benefits provided to you in order to avoid being prosecuted.
Myth #4: You Can Transfer Non-Exempt Assets to Qualify for Medicaid
Transferring assets to your spouse, children, or others so you don’t lose them is not a foolproof way to qualify for Medicaid. Currently, there is a five-year look-back period that Medicaid will examine for any asset transfers you made. If you gave away property or transferred it for less than it was worth, you may be ineligible for Medicaid to pay for your nursing home care even if you have no money to pay for it.
Myth #5: You Can Only Plan for Medicaid Eligibility Years Before You Need It
While it is best to start Medicaid planning long before you need it, it is never too late to make these plans. Even if you wait until you need to apply for Medicaid, our attorneys may be able to help you protect your assets and your spouse’s income and property and still remain eligible for Medicaid.
Myth #6: Your Spouse Must Use Their Income to Pay for Your Nursing Home Care
This is another myth that isn’t true. If your spouse's income is low enough, they may be able to keep all of it and be eligible to receive some of yours. Our lawyers will review your financial situation and help you develop the best plan to protect your spouse’s income.
Myth #7: You Can Figure Out Your Medicaid Eligibility on Your Own
One of the biggest mistakes you can make is to try to determine how to qualify for Medicaid on your own or with the advice of the nursing home. The rules are too complicated and require legal expertise to navigate effectively. Our Michigan lawyers are able to use strategies that most people don’t know about in order to help you protect your assets and qualify for Medicaid.