Are you ready? That is a loaded question. Ready for what? What happens if a loved one needs long term medical care, and how will you pay for it? Recently I have learned more about Medicaid, and what happens when a loved one needs Medicaid to cover their needed medical expenses. I had a vague idea working around the mortuary, but I really knew very little of the emotion and concern that accompanies the reality of it.
There is a website that says there are two kinds of Medicaid planning the first, and most frequently used, is the crisis planning. This is at a time when your loved one needs Medicaid’s assistance and you are forced to look at what is now possible. The other is pre-planned which will give peace of mind knowing that everything is in order and your posterity will have the maximum benefit from your carefully savings plan.
It varies from state to state what the exact rules are, but mostly it is that the person on Medicaid can only have $2000.00 dollars in assets. This includes houses, cars, insurances and bank accounts. For the exact rules for the state of Utah see the Medicaid Nursing Home Information pdf link below. There are some exemptions for spouse and dependents. Even though the state of Utah will not consider the home an asset that will limit your ability to receive Medicaid if your spouse is still living, when you sign for assistance a lien is placed on your loved ones home to be paid after your loved one passes away. An attorney specializing in elderly law should be consulted to know what is best for you.
There is a five year look back to ascertain what the person’s assets include, and during that five year period if you have gifted or sold the assets for less than they are worth in market value to your children, this may make you ineligible for Medicaid assistance. That is why it is important not to panic, but find some real help.
One way we can be of service is through an irrevocable pre-paid funeral plan. Medicaid exempts these type of plans when calculating the assets. It can give you peace of mind that your final arrangements will not be left to your children to pay, and it is less stressful because your children already know what your wishes are. We have a Family service agent that can help by coming to your home, or you can come to the mortuary. Please see the Pre-Planning section of our website.
American Fork Chapel
49 East 100 North
American Fork, UT 84003
Lone Peak Chapel
6141 West 11000 North
Highland, UT 84003