Planning Strategies

Medicaid Planning Strategies

The term “Medicaid Planning” refers to the various strategies available to individuals confronted with the escalating costs of long term care. Medicaid Planning can be broken down into two separate planning categories, pre-planning and crisis planning. As you may have guessed, pre-planning is done well in advance of an individual going into a long term care facility and has substantial benefits for those who so choose to take this route. Crisis planning are for those individuals who have not done any pre-planning and are either on the verge of entering a long term care facility or already in one. Without a doubt, the majority of Floridians entering a long term care facility find themselves in the crisis planning mode.

The purpose of this blog is to address a number of popular planning strategies often employed when doing a crisis plan for a Medicaid applicant. One of the more popular planning methods is what’s referred to as the Half-a-Loaf Plan. This strategy is strictly used for the crisis planning client and is used as a means of last resort.

The basic premise for the half-a-loaf plan is the Medicaid applicant will transfer roughly half their available assets to whomever they choose. Upon applying for Medicaid, they will be assessed a penalty period based on the amount of their transfer. They are then responsible for paying for their care during this penalty period of which they can pay for with the assets they did not transfer. Remember, we only transferred half the applicant’s assets. It is also important to note that the amount you need to transfer when employing this option is based on a sliding scale that calculates such factors as the monthly devisor ($5,000 in Florida), monthly income, cost of care and other necessary costs such as medical insurance. The reality is there are a number of moving parts and nothing is ever as simple as it seems. It’s important for anyone considering this plan or any other that they contact a Florida Elder Law attorney to consider their options.

Another popular option is often referred to the spend down method. Essentially, this enables an applicant to take advantage of the multitude of exempt assets available to any Medicaid applicant. For example, home improvements are considered an exempt expenditure. Therefore, if the roof to the applicant’s home needs repairing, they may pay to have it repaired without risk of jeopardizing their Medicaid eligibility. There are a number of exempt assets a Medicaid applicant may own and should take advantage of whenever they are applying for Medicaid. These include but are not limited to irrevocable burial plans, burial C.D., homestead residence and one vehicle.

There are many more planning strategies which I will continue to focus on in my upcoming blogs. Obviously, I can’t address all the planning strategies available in this one blog. Anyway, I hope this information is helpful and brings to light that there are options available if you find yourself in the unenviable situation of having to shell out thousands of dollars each month for long term care.

As emphasized earlier, whenever you are applying for Medicaid to cover long term care costs, it is important to contact a Florida Medicaid attorney to at least discuss your situation and whether you need their advice and guidance.

The information contained in this blog is simply that and should not be considered as advice. The application process for Medicaid benefits can be very complicated and failure to comply with all the laws and regulations specified will almost certainly result in a denial of benefits.

If you would like to contact me, please visit my website at www.upchurchlaw.com or call me at 386-255-1925.