September 19, 2017
Medicaid is at the center of the current health care debates in Washington. People fear that the demographics in this country will result in skyrocketing Medicaid program costs. Americans have not saved enough to pay for end-of-life health care – thus Medicaid will come under increasing strain. Many of our clients confer with us concerning Medicaid planning, which is sometimes described as divestment. First and foremost, before talking about Medicaid planning, a client needs to talk about how to “qualify” for Medicaid. Medicaid eligibility differs by state and also by marital status. Currently, you cannot have income higher than $2,205.00 to $2,898.00 per month per person, including your Social Security benefits. In addition, there are asset restrictions of $2,000.00, unless there is a spouse who is not receiving care – in which case that spouse can have up to $120,900.00, while their husband or wife qualifies for Medicaid. The primary residence does not count in the asset calculation, but there is a cap of home equity if the recipient of Medicaid is single.