Medicaid Planning in Oregon

Unexpected Changes and Major Decisions

Life is unpredictable, and sometimes it takes an unexpected turn. If you or a loved one has faced a sudden medical emergency or serious injury, you know how quickly everything can change. Are you or a family member now in need of nursing home care? Finding quality care and covering the costs under such circumstances can be overwhelming. We can help you explore your care options and guide you through the process of qualifying for Medicaid to support your financial needs

Understanding the Cost of Long-Term Care

The price of long-term care continues to rise, particularly as the aging population grows. According to the American Association for Long-Term Care Insurance, the annual cost of care is projected to double over the next two decades, jumping from $73,000 to $131,800. With longer life expectancies and advances in healthcare, people are living longer, which means more years spent in care facilities at higher rates. Without financial assistance, these costs can rapidly deplete your savings. Medicaid is a critical resource that can protect you from this financial strain.

What is Medicaid?

Medicaid is a federal and state partnership aimed at supporting individuals with limited income and resources. While Medicare offers limited long-term care coverage, Medicaid provides more extensive support. However, qualifying for Medicaid can be a complicated process, especially given its strict requirements. Without Medicaid, paying for nursing home care might be nearly impossible for many families.

Navigating Medicaid’s Complexities

Each state has specific Medicaid eligibility rules, but they all share one common challenge: complexity. There are strict income limits for individuals and couples, and applicants must not exceed a certain asset threshold, which is often very low, sometimes under $2,000. While certain items, such as your home and car, may not be counted towards eligibility, the asset limits remain stringent. For couples, the process is even more intricate. If one spouse is applying, the other may retain half of the couple’s assets, up to a set limit—currently $119,220*. If a couple’s assets exceed this amount, they’ll need to “spend down” to meet the limit, which can quickly drain their resources.

What Happens if Assets Exceed the Limit?

If your assets exceed the limit, you might think gifting them away is an easy fix, but this can lead to significant complications. Medicaid enforces strict “Transfer Penalty Rules,” meaning transferring assets could disqualify you from receiving Medicaid benefits for an extended period. If you’re facing an urgent need for care, it’s crucial to avoid delays. The longer you wait, the less your spouse may be able to keep, especially if your assets fall below the allowable threshold.

Protecting Your Assets Through Medicaid

This overview touches only on a few of Medicaid’s regulations—there are many more rules to navigate. Trying to figure it out alone could lead to costly mistakes. Fortunately, our team of professionals is here to guide you through every step of the Medicaid application process, ensuring that you retain the maximum allowable income and assets under the law.

Conclusion

Before you apply for Medicaid, it’s essential to seek expert legal advice. We are here to help you and your family during this challenging time, offering the peace of mind that comes with knowing you’re making informed decisions. When it comes to Medicaid, expert guidance is essential for protecting your financial well-being.