A lot of variation exists in the duration and level of long-term care that different people will need.
Nearly 70 percent of people currently turning 65 will need some kind of
long-term care.
70
percent
What does long-term care cost?
$116,800
COSTS OF CARE:
This varies by region across Pennsylvania from approximately $69,500 to $135,000.
Median annual cost for a private room in Pennsylvania
How do I pay for the care I need?
About 23 percent of all long-term care expenses are paid for out-of-pocket.
23
percent
About three percent of nursing care expenses are paid by long-term care insurance.
3
percent
Medicaid covers nearly half of all nursing home costs nationwide.
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2
3
4
Be a Pennsylvania residentBe a U.S. citizen or a qualified non-citizenHave a Social Security numberHave a medical need for long-term care services
GENERAL MEDICAID ELIGIBILITY:
To be eligible, you must:
Financial eligibility
There are limits on both income and resources when determining financial eligibility.
Income Limits
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The general income limit for Non Money Payment Medicaid is 300 percent of the federal benefit rate, which changes from year to year.
Most types of income are counted, including:
PENSIONS
SOCIAL SECURITY
WITHDRAWALS FROM AN IRA ACCOUNT
Most types of income are counted toward the general income limit:
Resource Limits
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For an individual with income of 300 percent or less of the FBR, the resource limit is $2,000, but in Pennsylvania an additional $6,000 in resources is disregarded.
Most resources are counted, including:
CASH
STOCKS & BONDS
IRAS
NON-RESIDENTIAL REAL ESTATE
BANK ACCOUNTS
How can I protect my assets?
Early Transfers
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The first strategy is the simplest, but also the riskiest. It requires advance planning to transfer assets before the five-year Medicaid look-back period.
Medicaid examines the five year period before the application, but there is no penalty for gifts or transfers of assets made before the five-year period.
Early transfers
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Converting Assets to Income
2
You can use your assets to pay off existing debts or prepay large bills such as insurance premiums and real estate taxes.
Paying off a mortgage, buying furnishings or buying a new car are all legitimate ways to spend down assets.
Converting assets to income
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Irrevocable Trusts
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In this arrangement, the trustor transfers assets such as real property or other investments to an irrevocable trust, with a trusted person acting as the trustee.
If the trust is structured to follow Medicaid’s rules, then the assets will not count toward the Medicaid resource limits.
Irrevocable Trusts
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Talk to an attorney to find out what strategy is right for you.
We give families the peace of mind of knowing the best possible planning is in place.