Medical facilities provide different levels of care, and nursing homes are no exception. Understanding this concept and how the federal government regards it in terms of Medicaid could be essential to planning for your long-term financial future.
Planning for any potential changes in your health is an important part of estate planning. If nursing care is a distinct possibility, you may want to have an asset protection plan in place as part of your general estate plan.
Considerations to make
Depending on your financial situation you have various options when trying to fund nursing care. Private insurance could be an option, as could various trusts or out-of-pocket and methods of payment. However, for many people, Medicaid is a more feasible option. As explained on the official website for the service, Medicaid is the largest health-coverage source in the United States.
Part of your eligibility for this program would come from your financial situation. This is probably the most pertinent point when it comes to estate planning. Unfortunately, it is also one of the most complicated.
In the most general terms possible, you would likely need to meet an income requirement to qualify for Medicaid coverage in nursing care. This is similar to the system that awards social security benefits. A well planned post-retirement income stream should help meet this goal and maintain your lifestyle.
Although it is not directly related to your estate, your doctor would need to deem nursing care medically necessary if you were using Medicaid. This does, however, touch on various other topics in estate planning, such as medical powers of attorney or living wills. Preparing these documents correctly could prepare for certain types of care situations, such as those necessary for diseases that affect your memory.
Medicaid requires federal licensing and inspections for facilities that accept it. It is important to maintain compliance on an individual basis as well to benefit from this program.