Many residents of Oklahoma are concerned about what might happen to their assets if they require long-term care. In a recent discussion, financial advisor Paul Hood clarified how Medicaid functions in covering costs for nursing facilities and whether one’s home and savings might be jeopardized.
Medicaid and Long-Term Care
“Medicaid, while not wanting to sound negative, can be perceived as welfare for older individuals, since most health insurance, like Medicare, doesn’t cover long-term care past about 100 days,” Hood explained. “If you find yourself needing to enter a facility, federally funded programs can assist with payments. The facilities may not be bad, but paying out of pocket generally allows for better options.”
Can Medicaid Take Your Assets?
Hood mentioned that a common query is whether individuals can transfer their homes and other assets to shield them from Medicaid’s reach. “Frequently, I get asked how they can do this or if they can transfer a parent’s house. Honestly, it feels a bit selfish.”
What About the Surviving Spouse?
He pointed out that having a plan is even more crucial when one spouse requires care while the other remains in the home. “In a marriage where one partner has a substantial IRA, Medicaid could deplete that before offering assistance. This raises concerns for the surviving spouse.”
Medicaid’s “Looking Back” Rules
Families contemplating asset transfers should be aware of Medicaid’s stringent rules, Hood cautioned. “People must realize that if they transfer assets, Medicaid can look back, sometimes up to five years, to reclaim those. They will investigate assets transferred in the last three years related to care expenses.”
Plan Ahead
Ultimately, Hood advised families to consider long-term planning. “Yes, it’s important to understand that Medicaid can indeed intervene and provide assistance.”
