A common concern among seniors is how to keep retirement savings from being spent on nursing home or long-term care costs. In addition, seniors want to keep their home or other real estate in the family and are concerned about the possibility of “losing their home to the government.” This fear is legitimate and is due to the prospect of having to qualify for Medicaid, which has stringent requirements for the amount of assets that one can have before a person is eligible to receive Medicaid benefits.
Medicaid
Medicaid is the nation's major public health insurance program for low-income Americans providing health care and long-term care services to moore than 52 million people. In Ohio, Medicaid provides helath care services to over two million residents and pays for the majority of long-term care provided in the state.
How do I qualify for Medicaid long-term care services in Ohio?
To Qualify for Ohio Medicaid, you must meet certain eligibilty criteria - such as U.S. citizenship, age and Ohio residency. You must also meet income and asset limits. If you are aged, blind or have a disability, you must not have assets that exceed $1,500 (individual) or $2,250 (couple). These asset lmits will be different for individuals who own long-term care partnership policies.
The calculations that the Ohio Department of Job and Family Services uses to determine Medicaid eligibility are very stringent. An improper transfer of money or property to protect your assets can immediately disqualify you from receiving Medicaid benefits. It is for that reason, we encourage our clients to seek legal counsel before making any transfers for asset protection purposes.
Medicare
What about Medicare? Won't that pay for my long-term care costs?
No - Although Medficare may pay for short periods of care (Medicare pays about 10% of the nation's total nursing home bills) you should not depend on Medicare to pay your long-term care bills.
(Source: Ohio Department of Insurance, Ohio Shopper's Guide Series: Long-Term Care Insurance)
For more informartion, call 1-800-324-8680 / TTY 1-800-292-3572 or contact your local county department of job and family services. You can also visit www.jfs.ohio.gov/ohp
What is long-term care?
Long-term care is the help you may need if you are no longer able to care for yourself. You may need long-term care if you have a prolonged physical illness, a disability, or a cognitive impairment such as Alzheimer’s disease. Long-term care is different from traditional medical care, because it may not help to improve or correct medical problems. The purpose of long-term care is to help you function at a time when you are not able to be fully independent. Long-term care services can help you meet daily health or personal care needs such as bathing, dressing, using the toilet, and eating.
Long term care insurance is a critcal part of Estate Planning. Learn more about long term-care insurance and the Ohio Partnership for Long-Term Care Insurance.
Long Term Care Insurance
One of the number one ways that one can protect assets from nursing home costs is through the purchase of long-term care insurance. Attached is an article from financial analyst Clark Howard about the importance of obtaining long-term care insurance. Read the Article
If purchased well in advance of the need for nursing home or assisted living care, obtaining long-term care insurance can be an effective way to cover a portion of long-term health insurance costs and preserve your assets.
DISCLAIMER:
Purchasing a partnership policy will not automatically guarantee you will be eligible for Medicaid when the time comes to apply. Income is a factor as well as a person's assets in the eligibility determination.