Know how to plan for Medicaid to get the healthcare you need at a cost you can afford.
Many adults wonder if they should plan for Medicaid before they grow older. This government-run insurance provides affordable healthcare to seniors ages 65 and older. All too often, however, seniors don’t plan for this program until it’s too late. While preparing for Medicaid isn’t easy, it’s essential to take the required steps to ensure you’re eligible when you need coverage the most.
Understand the Enrollment Process
Seniors don’t automatically receive Medicaid coverage when they reach the magical age. However, some states do enroll individuals once they begin receiving SSI disability benefits. Before you need the coverage, make sure to work with an expert who can help you enroll. Depending on where you live, you will have to meet specific income requirements before the state will approve your application. Since this process takes time, you want to make sure you apply as soon as you become eligible.
Learn How to Protect Your Assets
Medicaid is a need-based insurance policy. The plan covers select individuals based on their income and assets. Be aware, however. Even if you make below the limit, the state may deny your benefits if they discover you have more assets than allowed. If this happens, you’ll be responsible for paying your medical bills in full.
To avoid this dilemma, consider sheltering some of your assets. Financial experts familiar with the system can help you make some of your income and assets inaccessible. Even though these assets still exist, you will no longer be able to gain anything from them. Asset protection may help you become eligible for Medicaid benefits for which you would not qualify for otherwise.
Keep Your Loved Ones in Mind
Don’t let the idea of sheltering your assets make you nervous. You can often move these assets around to help benefit others in your family. Many loopholes exist which allow you to use assets for other purposes. For example, you may choose to pass your savings to a child to keep the money out of your bank. Others may give certain assets to a spouse without penalties.
Since over 70 percent of seniors need long-term care at some point, it’s wise to allocate some money to this cause. However, Medicaid would rather see you spend all your money first before footing the bill. Avoid this by transferring your assets to loved ones who you can trust to manage your finances. You can set up asset trusts or income trusts to help you better manage your finances.
Seek Financial Advice from a Medicaid Expert
While most seniors assume they will easily qualify for Medicaid in their Golden Years, this isn’t always the case. The government wants to save money as much as possible, and they will always look for a way to deny an applicant. Knowing how to manage your income and assets before you apply will help ensure you receive the benefits you deserve.
Before you jump into the Medicaid application process without a life vest, speak with the financial experts at Incompass Tax, Estate & Business Solutions. We understand the current rules and regulations of Medicaid and can help you set up trusts or transfer assets to help you qualify. Get in touch today to plan for Medicaid, so you don’t have to worry about future medical bills.