Long-term care planning is one of many things people must worry about later in life. And, in today’s blog post, we shed light on how you can strategically plan for LTC while considering Medicaid eligibility.
Understanding Virginia Medicaid Long-Term Care Programs
Our state offers several Medicaid programs specifically designed for long-term care. These programs cover services both in nursing homes and at home. The first is Nursing Home Medicaid (Institutional Medicaid). For those who meet income and asset limitations and need a Nursing Facility Level of Care, this program is available.
The program includes room and board, medical services and nonmedical goods and services. Beneficiaries must contribute most of their income to cover care expenses, and not all nursing homes accept Medicaid, which means that availability may vary.
The next is Home and Community Based Services Waivers. This program helps financially limited seniors remain in the community instead of moving to a nursing home. It covers services like personal care assistance, skilled nursing care and adult day care. However, this is not an entitlement. It has limited slots available, and waiting lists may exist.
Finally, there is regular Medicaid. It provides various long-term care benefits, including personal care assistance and adult day care. Eligibility is guaranteed for those who meet the criteria.
Medicaid eligibility criteria
To qualify for Medicaid long-term care in Virginia, there are income and assets limitations. For a single Nursing Home Medicaid applicant in 2024, your income must be under $2,829 per month. You cannot have assets worth $2,000 or more. You must require a Nursing Home Level of Care. For LTC services, you must demonstrate a medical need for LTC services. But, there are home exemption rules. Certain assets, like your primary residence, are exempt from consideration when determining eligibility.
The downsides
Avoid giving away assets to qualify for Medicaid. Medicaid imposes a look-back period during which they review asset transfers. Improper transfers can result in penalties and delays in eligibility.
Exhaust your own resources before applying for Medicaid. Do not rely solely on Medicaid without considering your personal savings and insurance.
While Nursing Home Medicaid is an entitlement, not all nursing homes accept it. Availability depends on facility capacity.
Conclusion
For those who know they will need LTC or want to plan for it, incorporating Medicaid planning into your estate plan is a key to-do item. Medicaid trusts can be used, along with various other estate planning options, as key tools to incorporate Medicaid into your estate plan.