My husband and I are over 80 years old. We own our house and a car. We also have some savings in the bank. Some people have suggested that we put that money under our daughter's name (she lives in another city), but we don't think it's legal. Both of us have health issues, especially my husband who lately suffered two strokes and was left with many limitations. My question is what will happen if we live long enough to use up all our savings. Right now we live on what we get from Social Security, but since it's not enough for to cover all our needs, including hospital and medication co payments, the savings are decreasing day by day. If that day comes, what can we do to meet our financial needs. Our daughter is not in the position of helping us. Is there a waiting period between our assets are almost used up and qualifying for Medicaid?
Second, this issue also has ethical implications. Nursing homes do not make any money on Medicaid reimbursement. This is problematic for both for profit and nonprofit facilities as both have rising operational costs and reimbursement from Medicaid is designed to not allow a profit and is retroactive in its cost adjustment (18-24 months in some states). The point here is that as more people "plan" to avoid paying the non-Medicaid or private charge for nursing home care, the fewer residents are contributing to the basic business that makes a nursing home succeed in terms of being able to offer competitive pay/benefits, more nursing staff, better activities, etc. There is a STRONG correlation between those facilities that have a majority of Medicaid residents and low star ratings on Medicare's Nursing Home Compare site. And the kicker here for me is that there are numerous responses on this website that think nursing homes are terrible places and money grabbers but the same people would scheme to hide assets and deny paying their fair share. Medicaid was established to ensure that those who truly need care are able to receive it, not to ensure that the more fortunate could have their cake and eat it too.
Third, there is an irony here as well. The fastest growing line item in almost every state budget is the Medicaid expense for long term care. This is due, in large part, to families transferring assets to avoid paying for nursing home care. Twenty years ago I was administrator in a facility that had about 60% of its residents paying privately. This facility is now averaging only 12% private pay. As the facility has had to rely on Medicaid reimbursement as its primary source of revenue, staffing has been reduced and resident satisfaction has declined, as one would expect.
I'm the POA to my parents who are now 90 & 94. If you haven't chosen a trusted family member to watch over your best interest, this is the time to do it while you are of sound mind and body. My parents selected me in their 80s. Now I handle everything for them. It's difficult to think about, but health, memory and ability to care for yourselves, your home and finances will become more and more difficult. You need someone who will be with you every step of the way. I have access to all their accounts and make all the transactions for them as they are no longer able to. Even though I live in the West coast and they live in the East coast.
It sounds like you may be needing more help sooner than later with you husbands limitations. Downsizing might be the logical next step. There is a 5 year look back with Medicare. So the question is where do you see you self in 5 years? In our situation, my parents lived in their own home, had their own car and other assets. My mother started to fall and injure herself often. It was clear that they could not keep up the house, the bills and my dad was taxed from caring for mom. So together we made the decision to sell all their assets and move to an independent living. It was a good first step. They were able to use the funds from the house and car to pay for it, while having transportation provided, maid service and meal prepared for them while dad cared for mom. As time went by mom needed more help and we got ancillary help to come in. Of course this can get expensive and when it was clear that dad was slowing down, I moved them into assisted living. We are now getting to the point where all their assets are spending down and Medicare is the next option. My point is, don't hold on to your assets if you think you are going to need the funds from them. Putting them in your daughter's name is not illegal but Medicare will know with their 5 yr look back. The funds might serve you better in finding a place that can give you the assistance you need now. Many expenses that come along with owning a home/car will be gone, your life will be simplified to allow you both to focus on your health and well being. Get your daughter involved and together you can make the best choices for you.
Best of luck.
Glad you are planning ahead for when the time comes. Check with your State Medicaid office for their requirements and start working on those requirements to give you a head start, or at least learn what is available.
How expensive is it to keep up your house? Utilities, property taxes, maintenance, repairs? Some seniors find it is time to downsize into something more manageable. Since you own your home, use some of that equity as a safety net for any future medical issues.
Medicaid and Medicare are TWO DIFFERENT PROGRAMS. Medicare will not pay one red cent for nursing home or assisted living. It will pay for hospitalization for certain amount of time, and other things.
When you spend down, and have nothing, Medicaid will pay for some of your nursing home. (Doubtful about assisted living). They will take your social security check and pension, if any, and your house.
Two different things.
See All Answers