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Medicaid, Nursing Homes & Estate Planning

The average monthly cost for a nursing home is about $5,000. Most people cannot afford that. As a result, roughly 65% of all nursing home residents turn to Medicaid to finance their medical care. Medicaid is a state and federally funded Title 19 benefit program, and most people recognize Medicaid as a program to help poor people. But, fewer people recognize Medicaid as a program that can help most middle-class families to preserve their wealth and even pass an inheritance—all the while receiving Medicaid benefits to cover the costs of long term care.

Due to a lack of understanding or possibly stigmatization of “receiving benefits,” a lot of families pay the nursing home from their life savings. But $60,000 a year as a private pay patient will quickly expend most people’s life savings. The next step is usually to sell the family home to continue paying privately. The hard truth is none of that is necessary with proper Medicaid planning. An unfortunate reality is that a great number of families who could have benefitted from Medicaid planning will eventually end up turning to Medicaid when they have exhausted all other resources.

But wouldn’t it be nice to pass an inheritance to the grandchildren? Or, to provide for a special needs child? What about preserving life savings entirely? These are some of the things an estate planning attorney can help with. The Medicaid qualification criteria and its governing law are complex, but it was written with numerous provisions that allow for the protection of the family.

Seventy percent of those over 65 years old will need some form of long term care in their lifetimes. If you or someone you love is within that 70%, consult with an elder law attorney to see what planning options you may have.

Don’t Go Bankrupt Paying a Nursing Home

If your loved one needs long term care, but you cannot afford the cost of a nursing home, what do you do? People all across Texas are asking themselves this same question. The number one payer source for long term care is Medicaid—not long term care insurance, not Medicare, not life savings. So, the question is: are you eligible for nursing home Medicaid?

For a free legal consultation, contact us at (713) 936-9620.