It is no secret that medical care is expensive. For seniors, it is a huge expense that many cannot afford. While they will have Medicare coverage that will provide some assistance with medical costs, it often does not offer enough coverage to make all care affordable. The Medicaid program offers an option for extensive assistance with medical costs but only for those who meet financial limits. This limitation often creates issues for seniors who have assets in their names. It could leave you scrambling to try to qualify your parents for the program.
According to The CPA Journal, Medicaid will examine your parents’ assets, looking at all non-exempt assets. Luckily, there is a certain amount of assets they can have, such as a vehicle and their personal property, that do not count against them.
Selling off or transferring assets
If your parents are over the income limit for Medicaid, they may be able to sell or transfer assets to lower their overall holdings. However, Medicaid can look back over the past 60 months to see what assets your parents did have. It will review any sales or transfers. In some cases, the property they sold will still count towards their assets Medicaid will use to qualify them.
It is important as you prepare for the long-term care of your parents that you understand the Medicaid rules. If your parents own substantial assets, it is often a good idea to seek some assistance in planning their Medicaid application. Getting help can make it easier to avoid a loss of assets while also ensuring that they can meet the eligibility requirements and get the healthcare coverage they need.