​Medicaid 101
What is Medicaid
By Paul Lorrah
 
Medicaid now covers health care and long term care - today we're focusing on the long term care Medicaid program.








Medicaid is a joint federal and state funded program designed to pay for long term care costs associated with aging or a disability.

Long term care costs rise significantly each year. The average cost of a nursing home is $10,500 per month.
This is much more than most people can pay for any length of time.

Medicaid has become the long term care insurance source for middle class Americans.
 
Medicaid - also known in some states as LTSS [Long Term Services and Supports] is the largest source of LTSS funding in the country.

Currently Medicaid covers more Americans than any other health insurance program. 76% of all individual receiving care at a nursing home utilize the Medicaid program to pay their bills.

Medicaid is NOT welfare, it's part of the Social Security Act and was created in 1965. Originally intended solely for the cost of long term care.

The Medicaid program is the only program that will pay 100% of a person's nursing home costs [and in some states assisted living and at home care costs].

Medicaid does however have strict eligibility guidelines for income, assets and medical needs.

Please read or next blog - Medicaid 102 - Eligibility basics


then call us at 855.471.6771 or email  - [email protected]

               WANT TO KNOW IF YOU QUALIFY NOW!  TAKE OUR SIMPLE 5 MINUTE MEDICAID TEST!
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​Medicaid Plus. P.C has process thousands of applications over the years and we know exactly what the Delaware Medicaid program requires and how to get you approved quick and easy. Medicaid Plus will educate you on all of the eligibility requirements and provide guidance and assistance in obtaining Delaware's Medicaid benefits.
 
Call us today for peace of mind knowing that Medicaid Plus will help ensure your Medicaid approval. Applying for Medicaid without knowing all of the guidelines is an avoidable mistake.
​

70% of all seniors will need long term care. 25% of those will require long term care for more than 5 years. Is your family prepared?

The cost of long term care rises drastically each year, what's the average?

• Skilled nursing homes average more than $10,000 per month;
• Assisted living, more than $6,000 per month;
• At home care, more than $4,000 per month.                                                                                                         

5 years of long term care could result in costs upwards of  $500,000. If you don't plan ahead, where will the money come from?

​How to pay for long term care
The options are;

• Pay from personal or family funds such as savings, investments, etc. - this may work for some but for most families this option won't last very long.
• Reverse mortgage - if the long term care recipient owns a home, a reverse mortgage may be an option, however, they come with very high closing costs, you may no longer be able to pass your home to your family and they are available to those over 65 only. They also have many other restrictions and clauses that affect anyone living in the home who is under 65. Do your homework before choosing this method.
• Long term care insurance - this is an option, however, it is our least favorite because the policies are very limited as to what they pay, how long they pay and the premiums, if you can get approved, are very high and will increase drastically each year.
• Life insurance - life insurance can come with a long term care rider that will allow the policy owner to use the death benefit to pay for long term care costs.
• Medicare - contrary to popular belief, Medicare will not pay for long term care except for skilled, short-term, medically necessary care and only then for up to 20 days in full and only following a qualifying hospital stay. [days 21-100 a co-pay of $137.20 per day will be due, after day 100, all costs are billed to the family].
• VA Benefits - if you are a veteran and qualify, you can obtain up to $1,780 per month as an individual, $2,125 as a married couple or up to $1,180 as a widow or widower of a veteran. The process is very complex , have a specialist assist you to get the full benefits allowed. These benefits work great for individuals needing at home care or even assisted living care because it will help subsidize the costs, it may not pay all of them but it will help.
• Medicaid - Medicaid is the only government benefits program that will pay the entire cost of your long term care once approved. It's a difficult process so have a specialist assist you. You don't have to spend all of your money and be destitute to qualify either as most people will have you believe. You can qualify and preserve assets as well.

There are options available and the further ahead you plan ahead the more options you'll be able to take advantage of.

Author Paul Lorah is a Medicaid and Long Term Care Planning expert who has authored such books as "Planning and Paying for Long Term Care' and "How to Get Medicaid to Pay for Your Long Term Care Costs". ​​​
 
Regardless of whether you are 5 years out from needing care or you need care now, contact us for expert advice on what options are available to you based on your needs, goals and financial situation. 855.471.6771

Worried about the cost of winding up in a nursing home or requiring professional at-home care during your golden years?





Long-term-care insurance has become increasingly more expensive, driving many seniors out of the market. The good news is that annuities with “nursing home riders” are now available that can help pay for the nursing home costs.

How to Use an Annuity to Replace Long Term Care Insurance

Can Annuities replace Long Term Care Insurance? Long-term care and lifetime income provisions built into hybrid annuities or achieved with optional riders vary in design. Some are a more complete answer, and some help supplement a potential extended care need. Also, all of this is accomplished with guarantees, avoiding any and all market risk.

As you may be aware that the indexing portion of the hybrid income annuity uses a popular stock index offering potential market upside with absolutely no downside market risk, in addition  it can also create a lifetime income and supplement a long term care need! So, this essentially creates a unique win-win-win situation.

So how do these hybrid annuities work for long term care? Although there are many differences in the hybrid annuity themselves, the basic premise is that the contract allows for growth on one’s money while providing a long term care solution and easier way to qualify for a long-term care benefit. The hybrid chassis is a fixed index annuity, in that it will provide safety, growth and a lifetime of income. In addition to that, there is also a long-term care component that can be built into the hybrid annuity contract.
In some cases, the long-term care rider on the account means that the purchase will require some form of medical underwriting for approval. This may entail a health questionnaire and possibly a physical examination.

Once approved, and if long-term care services are needed in the future, initially a portion of the cash account value from the hybrid annuity may be used to pay for those long-term care needs. The long-term care coverage in some hybrid income annuities may be determined based on the amount of coverage that is selected when making application for a hybrid annuity.

Depending on the issuing insurance company, the company may offer a payout of between two and three times the initial policy value, typically paid out over two to four additional years after the annuity cash account value is depleted. As an example, if one were to deposit $100,000 into his or her hybrid annuity and selected a benefit limit of 300 percent and a four-year long-term care benefit rider, then they would essentially have an additional $200,000 over and above his or her initial $100,000 deposit that could be used for long-term care expenses––even after the initial $100,000 of annuity policy value was depleted! So in other words, for his or her $100,000 deposit, they could actually end up with a potential payout for long-term care expenses of $300,000.

Another method is referred to as a Long Term Care "Doubler" or a Home Health Care "Doubler" which essentially allows the lifetime guaranteed income to be doubled for a limited time such as five years or with some annuities for the entire duration of the long term care stay.

In addition, due to the Pension Protection Act of 2006 that became effective in January 2010, he or she may receive some of these long-term care benefits from his or her annuity on a tax-free basis. This offers considerably more value than if taxes were due on these long term care distributions.

Note:  the above method is used when planning in advance, If your in need of nursing home care now, contact us today, we can show you how to protect your assets and qualify for Medicaid. Medicaid can pay your long term care costs once qualified. 

Questions?  contact us today  Email: [email protected]