Medicaid is a government-run health insurance program for low earners. To qualify for benefits, you must meet specific income requirements, which include calculating your assets as part of your income.
The American Council on Aging explains that when planning for your long-term care, you need to also do Medicaid planning.
What it is
Medicaid planning is the process of ensuring your assets are in order so that you can qualify for the program as soon as you are eligible. Part of the process would be making sure you sell or gift assets before the look-back period begins.
The look-back period is the time in which Medicaid may go back through your finances to see if you got rid of any assets. If you get rid of assets during the look-back period, Medicaid will count those as your assets, which could mean you do not meet the financial requirements to qualify for the program.
Why you need it
You will need Medical planning if you know you will need extra medical coverage. If you do not have health insurance that will cover all the costs of your long-term medical needs, then you will need to make sure you can get Medicaid to help cover your expenses.
The process of ensuring your finances are in the right shape to qualify can be quite complex. Going through the Medicaid planning process will help you to understand the rules and how they apply to your specific situation.
When it comes to qualifying your Medicaid, the state is very strict on the requirements and limits. If you do not meet all the financial requirements, then you cannot get assistance, which could leave you with long-term expenses you cannot afford.