Many senior citizens need long-term care at some point. Some senior citizens do not have family members who can give them the kind of care they need, and because of that as well as many other factors, they will need nursing home care. Long-term care is expensive, whether at home, in assisted living or in a nursing home. In Michigan, the statewide average monthly cost of a nursing home is $10,870.00. In Metro Detroit, the monthly cost of a nursing home tends to exceed $12,000.00. Providing the same level of care at home or in assisted living can be just as expensive.
These costs, for the most part, are not covered by Medicare. They are, on the other hand, covered by long-term care insurance. Unfortunately, few of today's seniors have such insurance. That means that they must rely on their savings to cover the cost of care until they qualify for Medicaid.
Few seniors can afford to pay for long-term care for very long and doing so can leave a healthy spouse destitute and deplete the inheritance they have worked long and hard to leave to their family.
The Michigan Medicaid program pays for nursing home care for those who qualify. The rules are complex and frequently change. The application process can also be daunting. Medicaid planning is critical for many people to be able to qualify without spending down all of their savings. Andrew Byers is a Medicaid planning attorney in Troy, Michigan who has guided seniors and their families through this process for more than twenty years, helping them to protect their savings and to receive the benefits and care to which they are entitled. I do this both through advance planning with clients in good health or who have just been diagnosed with an illness. I also can still help families of seniors who are hospitalized or already in a nursing home with qualifying for Medicaid. Call (248) 469-4261 for an initial call where we can discuss your Medicaid planning options or contact me by using the online form.
What is Medicaid?
Medicaid is a state and federal program that helps pay for long-term care services in the community and in nursing homes, but only if you meet the income and asset criteria. Costs of this program are typically covered by a combination of federal and state funding.
Planning for Medicaid in Michigan
Before submitting an application for Medicaid, many people go through a process known as Medicaid planning. There are two aspects to Medicaid planning for the nursing home in Michigan.
The first aspect of Medicaid planning is the process of verifying that the person who is applying for Medicaid is actually eligible before submitting the application. By actually eligible, I mean verifying that they meet the level of care and income and asset criteria. This is important, because if the application is submitted before someone is actually eligible, the application process may drag on for months, which will make the nursing home mad (because they are not getting paid) and therefore impact the level of care. In addition, if the person is not actually eligible at the time the application is submitted, the Michigan Department of Health and Human Services will deny the application several weeks or months after it was filed, due to excess assets. This may result in $15,000 to $45,000 being owed to the nursing home. If the family cannot pay this bill, the facility may initiate involuntary discharge proceedings or contact adult protective services. Adult protective services may then initiate a proceeding in the probate court to have a public guardian appointed to take over the elder's care and financial decisions. All of this makes the process very stressful and can otherwise be avoided with proper Medicaid planning with an experienced elder law attorney.
The second aspect of Medicaid planning is legally restructuring the Medicaid applicant's assets so they can qualify for Medicaid without spending them down to $2,000.00. Staff at the nursing home or hospital might say it's too late for a single person to protect any of their savings. The state Medicaid caseworker might say the spouse of a nursing home resident can only keep some of the assets and that the other part of the couple's savings must be spent down before the spouse in the nursing home qualifies for Medicaid. Both statements are inaccurate. Congress has made the Medicaid laws as complicated as the tax code and an elder law attorney can help you take advantage of the protections built into Michigan's Medicaid laws over the years so you can save a great deal of money. For single people, we can usually protect at least half of the assets that are at risk. For married couples, we can usually protect all of the assets at risk.
Why People Plan for Medicaid
There are multiple reasons why people engage in Medicaid planning in order to qualify for the program. Three common reasons are:
- To obtain coverage for the cost of long-term care that they would not otherwise be able to afford;
- To legally restructure and protect savings and other assets that would otherwise have to be spent down on nursing home care before they qualify for Medicaid;
- To preserve and protect the home that may otherwise be lost to the Medicaid's estate recovery program; and
- Because the Medicaid application process can be confusing, getting assistance from someone who understands how it works can prove very beneficial in the long run.
Medicaid planning is the process of arranging your income and assets in a way that preserves your eligibility for Medicaid, while also protecting your family's financial security and your legacy. There are various strategies and tools that can be used for Medicaid planning, such as trusts, annuities, gifting, and more. However, not all of these options are suitable for everyone, and some may have negative consequences if not done properly. That's why it's crucial to consult with an experienced elder law and Medicaid planning attorney who can help you create a personalized plan that meets your needs and goals.
How a Medicaid Attorney in Michigan Can Help
If you or a loved one is in need of the long-term care that Medicaid helps cover but are unsure if you will be able to qualify, our Medicaid attorney in Troy, Michigan can help. Medicaid planning is not a one-size-fits-all solution. It requires careful analysis of your financial situation, your future needs, and the potential consequences of your actions.
- That is why it is important to consult with an elder law attorney who focuses on Medicaid planning and knows the laws and regulations in Michigan.
- An attorney can help you design a plan that suits your needs and goals, while avoiding common pitfalls and mistakes that could jeopardize your eligibility or expose you to penalties and high nursing home bills.
Contact an Estate Planning Lawyer in Troy for Medicaid Planning Today
Andrew Byers is an experienced elder law attorney who understands the importance of Medicaid eligibility for seniors who need long-term care. If you or a loved one needs nursing home care and wants to apply for Medicaid in Michigan, contact me now by using the online form or calling me directly at (248) 469-4261. On this initial call, I'll answer your preliminary questions and get some background information to make sure it's a situation I can help with. After that, you can decide if it makes sense to schedule a more in-depth consultation. I can help you navigate the complex and confusing process of Medicaid planning and ensure that you get the best possible outcome for your situation.