Ideally, Connecticut residents can start planning to go on Medicaid for years ahead of when they will need the program to support their nursing home stay and long-term care.
However, for many different reasons, some people may not be able to think about Medicaid planning until they have a relatively urgent need for assisted care but have no other way to pay for it.
While admittedly this is not an ideal situation, there are still some strategies people can use to make it easier to qualify under the Medicaid program’s asset and income requirements.
People in this situation first need to make sure they do not panic or do something rash to try to qualify for Medicaid benefits.
While quickly giving away property can in limited cases be appropriate, many times it will mean a person will get penalized by having to pay for their nursing home stay out of pocket for several months.
Families in need of emergency Medicaid planning should make sure they understand their legitimate alternatives.
Simple strategies can help a family get Medicaid for their loved one more quickly
While the best choices for emergency Medicaid planning will depend on a family’s circumstances, here are some possible ideas people can explore:
- A person may be able to spend their money on certain types of expenses, including certain investments in home improvements.
- A person may be able to make some investments, like an annuity.
- One way to reduce a person’s property to qualify to Medicaid is to use savings to pay down outstanding debts. A person may also without penalty prepay certain expenses, including the cost of their funeral and the cost of a burial plot.
- Certain transfers to one’s spouse or minor children are allowed.
- A person may enter a Caregiver Contract with someone to compensate them for personal and household services, like cleaning one’s home or handling finances. A caregiver can be an adult child or other relative, so long as the pay rate is reasonable for the services performed. For example, $20 an hour for household help may be reasonable, but $200 an hour for the same work would probably not be reasonable.
Again, the developing and executing of the best overall strategy will depend on a person’s unique situation. People needing Medicaid planning in a hurry should consider getting professional legal help, as making strategic errors in this process can prove financially damaging.