The cost of long term care will be the greatest threat to your home and finances.
7 out of 10 people will need some type of long term care. Nursing home care costs are astronomical, and rise every year.
In 2020, the average cost for a nursing home in the Boston, Massachusetts area was $14,509 per month. (Source)
Private in-home care is even more expensive, with 24-hour care costing $21,840 per month. The average senior needs care for about three years, costing $522,324– $786,240.
The costs for long term care will threaten your home and finances. It’s unfortunate that many seniors are paying the full price for nursing home care out of pocket. Even after years of disciplined saving, nursing home bills or in-home care costs can quickly deplete your bank account in a matter of months.
No. Medicare does not cover nursing home care except in limited circumstances.
People are often confused over the differences between Medicare and Medicaid. Though their names are very similar, the programs are quite different.
Medicare is an entitlement program in which most people enroll when they turn 65 years old. There are no financial qualification rules.
Medicare Part A may cover a short term stay (up to 100 days) in a skilled nursing facility, but the rules for coverage are very strict. You must first have a qualified hospital stay, and the facility must admit you for the illness or injury that you were receiving hospital care for.
Medicaid is the largest provider of financial assistance for nursing home residents in the United States. Medicaid is a joint federal-state program. In Massachusetts, it is known as MassHealth Medicaid.
There are strict laws for Medicaid eligibility to pay for long term care. There is an asset limit, and in order to be eligible, one must have assets under the limit. Eligibility is determined after the proper application is submitted to the commonwealth of Massachusetts.
Many people think they can simply gift their money, property, and other assets away to loved ones to become eligible for Medicaid. That is not true. Once you apply, the Medicaid office will review all asset transfers from the previous 5 years (called the look-back period).
Asset transfers or gifting must be done properly, with the aid of an attorney. Severe penalties are imposed on improper gifts including the denial of benefits for several years.
The process of applying for and receiving Medicaid benefits is extremely difficult and time-consuming for the applicant. However, with appropriate planning, we can help you become eligible for Medicaid while still protecting your nest egg that you’ve built over your lifetime.
It’s never too late to protect your life’s work. When we sit down with you, we discuss your goals and look into the future to develop a complete plan that protects you for generations to come.
At Patrick J. Kelleher & Associates P.C., we assist seniors and their families in making the tough, but necessary decisions regarding future long-term care needs.
Our proactive planning techniques protect your assets from Medicaid eligibility and recovery. We can also help if the time for advanced planning has passed. Our crisis planning techniques can manage your assets when your loved one is already in a nursing home, and immediate Medicaid eligibility is needed.
We would be honored to help you and your loved ones. Click here to get started.