Confused About Medicaid Long-Term Care Planning?

Given the financial eligibility requirements for Medicaid, it is wise to thoroughly understand the details regarding a person’s assets and income to meet the rigorous eligibility criteria.

Income and Asset Limits
There are income and asset limits for Medicaid applicants to be aware of. The income limit for Institutional/Nursing Home Medicaid and Medicaid Waivers/Home and Community-based Services is $2,829 per month. Most income that a Medicaid applicant receives is counted towards the person’s Medicaid income limit. An applicant’s income includes employment wages, alimony payments, pension payments, Social Security Income, IRA withdrawals, and stock dividends.

For individuals with incomes exceeding the Medicaid limit, Ohio allows the creation of a Qualified Income Trust, also known as a Miller Trust. This trust can be used to reduce income, rendering a person eligible for Medicaid. The attorneys at DGMP can assist with establishing a Miller Trust.

Medicaid eligibility also includes an asset limit. Generally, the asset limit for an individual is $2,000.00. Some personal assets are exempt as considerations for Medicaid eligibility. Exemptions often include an automobile, personal belongings, household furnishings, and irrevocable burial trusts. An individual’s primary home is also generally exempt. Further, to meet the asset limit, the attorneys at DGMP can help to implement certain planning strategies.

In addition to financial qualifications, the Medicaid process also requires an applicant to pass functional standards to qualify for long-term care coverage. The individual is assessed for the ability to perform, without assistance:

Activities of Daily Living (ADLs), such as bathing, dressing, eating, toileting, etc.
Instrumental Activities of Daily Living (IADLs), such as being able to manage finances, cook for themselves, and drive.

Medicaid planning is complicated and essential. Dooley Gembala McLaughlin Pecora’s attorneys can assist clients in all aspects of Medicaid long-term care planning so that they can preserve assets and receive the care they need.