Medicaid crisis planning for when the unexpected happens

A slip-and-fall accident, a debilitating diagnosis or abrupt physical and mental limitations stemming from age can strike seemingly without warning. Sudden incapacitation can require in-home care or placement in a long-term care facility. Crisis planning steps after an unforeseen event can help mitigate unexpected costs and further anxiety.

Asset limitation and eligibility requirements

As a jointly operated federal and state care program, Medicaid provides long-term care funding for eligible individuals. To qualify for Medicaid, you must meet certain asset and income requirements based on the Modified Adjusted Gross Income (MAGI) formula. Taking the appropriate steps to qualify for Medicaid can prevent undue financial hardship when confronted with the staggering costs of nursing home and in-home care.

Sudden incapacity presents a myriad of financial decisions

Long-term care planning involves using asset protection strategies and prudent steps to prepare in advance for the high costs of an illness, a disability or age limitations. Unlike long-term care planning, crisis planning occurs at the onset of or shortly after a sudden catastrophic event that severely impacts an individual’s wellbeing and overall abilities.

Considerations when determining how best to reposition assets include:

  • The age and overall mental, physical and emotional health of the estate owner
  • The value of the estate
  • The composition of the estate, including a home, a vehicle and investments

Following lawful steps is a must

The steep costs of nursing home care can quickly erode the assets and savings accumulated over a lifetime for both the affluent and those with limited means. However, crisis planning steps can help you or a loved one protect a certain amount of assets before they are depleted to pay for long-term care.

Medicaid has strict regulations in place to prevent fraudulent activities by those attempting to qualify for aid and can result in steep fines and other penalties for those attempting to work around the rules. Crisis planning early on after a calamity can help you or a loved one legally protect the maximum amount of assets allowed by federal and Wisconsin laws.