Medicaid in Indiana
Updated: Mar 18, 2019
The average nursing home stay is…
835 days (2.3 years)
The average daily rate for nursing home care is…
This would mean an annual cost of…
Can you afford that? The ideal solution to this problem would be Long-Term Care Insurance. Unfortunately, most people do not have Long-Term Care Insurance. The result is that 60% of nursing home residents are on Medicaid.
To be eligible, you must be aged 65 or older, blind, or disabled. For a single person, you can have $2,000 in countable assets. For a married couple in nursing home care, you can have $3,000 in countable assets. You cannot have any more than the allowable amount by the first of each month in order to remain qualified for Medicaid.
What are countable resources? Countable resources include things like cash, bank accounts, stocks, bonds, mutual funds, CDs, cash surrender value of life insurance, retirement accounts, negotiable loans, and revocable trusts.
There are some resources that are exempt from Medicaid eligibility. Exempt resources include things like your home (so long as you, your spouse, or dependent child lives there or you are reasonably expected to return home), household goods, personal possessions, one motor vehicle, prepaid funeral trust, burial plots, and income-producing real estate.
There can be penalties if you make a transfer within the five-year look back period (Medicaid will look back five years to determine if you have made any transfers). A transfer occurs when you give property for less than fair market value. For example, if you give away real estate or add a person’s name to the title, Medicaid will consider this a transfer penalty.
Also, you cannot make gifts over a combined total of $1,200 each year without being penalized. The transfer penalty period means that Medicaid will not cover your nursing home expenses for that period of time.
If it appears that you, your spouse, or your parent might need nursing home care, seek advice early so that you can plan and maximize the benefits available to that person and his/her spouse.