Knowing which assets are exempt and which assets will count towards your Medicaid eligibility is key in proper Medicaid planning
Many seniors spent their entire working careers receiving great employer health insurance coverage and never having to think about whether they would qualify for Medicaid benefits. However, as you become a senior and enter into your retirement years, you may find you still need help covering the out-of-pocket expenses Medicare doesn’t provide coverage for, especially if you are faced with a medical condition requiring long-term care. What you may not know is Medicaid eligibility is determined by more than your income, and certain assets you own may count towards your Medicaid eligibility and disqualify you from receiving benefits.
Why do seniors need to plan for Medicaid eligibility?
You may not think you will ever need to qualify to receive Medicaid benefits because it is not something you have ever needed before. But nearly 70% of all seniors who are nearing the age of retirement will need some sort of long-term care at some point in the future. And unless you have pre-planned for these costs through a private long-term care insurance policy, you will also likely need help paying the excessively high costs for this long-term care. Unfortunately, Medicare and other private health insurance plans do not provide coverage for most long-term care costs. However, Medicaid does provide coverage which will help cover these long-term care costs. In fact, more than half of all residents currently receiving long-term care are reliant on Medicaid to help cover the costs of their care. This is why it is so important for today’s seniors to prepare for Medicaid eligibility even if you do not need the coverage right now. With proper proactive Medicaid planning, you can ensure your assets are structured in a way which will preserve your assets while still allowing you to qualify for Medicaid benefits when you need them.
Which assets are counted when trying to qualify for Medicaid benefits?
Medicaid is a joint healthcare program that is funded by both the federal government and the individual states and is administered by the states. In order to qualify to receive Medicaid benefits, an individual or family needs to meet certain income and asset limitation standards. In the state of Kansas, the Medicaid program is also known KanCare. The state of Kansas provides multiple pathways for individuals and families to qualify for Medicaid, and the income and asset limitations vary depending on how the individual is qualifying for Medicaid benefits.
When it comes to income and asset limits for Medicaid eligibility for long-term care benefits, assets which are considered countable assets include any assets that could be easily converted to cash in order to help cover the cost of long-term care. Some of the most common assets that are considered countable assets include:
- Cash
- Investments
- Stocks and bonds
- Checking and savings accounts
- Pension funds
- Real estate property that does not serve as an individual’s residential home
- Motor vehicles, with the exception of one automobile
There are also some assets that are considered exempt from being considered in Medicaid eligibility. Exempt assets include:
- Your residential home (if valued at less than $585,000)
- One automobile
- Personal keepsakes and belongings
- Household furniture and goods
- Life insurance policies with a death benefit of $1,500 or less
- Burial plots and irrevocable burial plans
- The community spouse resource allowance (CSRA)
Determining which assets are countable and which assets are exempt when determining Medicaid eligibility can be difficult, so it is important to work with a skilled Medicaid planning lawyer to ensure your assets are properly structured and preserved.
The best time to prepare for future unknown medical needs is now. The compassionate Kansas Medicaid planning attorneys at Stockton & Kandt, LLC. have the experience necessary to be your trusted advisors and guide you through the complex Medicaid planning process. Our lawyers are well versed in today’s Medicaid and estate planning laws needed to protect your family’s financial future and ensure you receive the benefits to help cover the costs of the care you need. To schedule your appointment to speak with one of our trusted Medicaid planning advisors call us at 913-856-2828 or contact us online today. We have offices conveniently located in Gardner and Overland Park, and are available to meet you at your home if needed.
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