How does Medicaid work?

estate planning

As people continue on with their careers, they try to prepare for their future financially. This can be especially important for retirement. When funds are no longer streaming in due to one’s retirement, it can be hard to cover the cost of all the necessities that you have grown used to. If your retirement plan does not cover the cost of health care insurance, you may have to consider Medicaid. With Medicaid, it can cover the full cost of medical care with specific care providers that qualify for this method. In order to find out if you are eligible to obtain Medicaid, it is best to consult with our professional attorneys to get the answers you need.

Medicaid is supposed to cover the full cost of medical care but only certain care providers qualify for Medicaid. It was put in place to also cover the cost of assisted living facilities and nursing homes. Medicaid can serve a great purpose. It is made to help those that are in need of this type of care, but who cannot otherwise afford it. Since health is a top priority, it is important to explore all your options when seeking medical care. However, there are strict eligibility requirements in place for those who wish to acquire Medicaid.

When should I prepare for this?

By planning for Medicaid in advance, it can give you the best chance at obtaining this care by meeting all the requirements. To prepare for this, it is necessary to restructure your assets. When doing this, the advice of an attorney can be of great use. They can help you decide which methods to use that would work in your best interests. Since the eligibility requirements are strict, legal counsel can help decipher what method would work best for you.

How can I protect my assets?

Individuals cannot have many assets that add up to a significant financial value to qualify for this. The depletion of their financial assets is important in meeting the qualifications for receiving Medicaid. However, you cannot make certain asset transfers within five years of applying for Medicaid benefits. If this is done, you may face serious consequences. This may include fines and it could compromise your eligibility to receive Medicaid. To become eligible, you can gift your assets to family members, employ irrevocable trusts, transfer the home to intended beneficiaries, establish a contract for caregiver-child, purchase immediate annuities or spend down assets. By spending down assets on preparations for funeral expenses, paying off mortgages and debts, making home repairs or purchasing a new vehicle, it helps to deplete your financial assets.

The attorneys at JD Katz have years of experience compassionately guiding clients in Maryland through the estate planning and administration process. Our firm also has experience with matters of elder law, business law, tax law, and litigation. For a legal team that will put your needs first, contact JD Katz today.