Medicaid Planning & Asset Protection

Nearly 60% of Americans will spend some time in a nursing home. As life expectancies and long term care costs continue to rise, many families now face the challenge of how to pay for these services. Unfortunately, most people are not aware that Medicare and private Medicare supplement insurance do not cover the cost of long term care. In fact, Medicare provides for short term assistance with nursing home costs, up to 100 days of coverage, but only if you meet the strict qualification rules.

What Pays The $8,800 Monthly Nursing Home Bill?

(1) Private Income

(2) Long-Term Care Insurance

(3) Hawaii Medicaid

Although long term care insurance is a great alternative for those who can afford such coverage, the high cost of a good policy may be out of reach for many elderly people. Since the nursing home costs in Hawaii average over $100,000 or more per year, long term care and nursing home costs can quickly drain your life savings in months, not years. Consequently, the financial security of the spouse that is still at home may be jeopardized to pay for the nursing home costs.

The primary alternative for many people to pay for nursing home care is the Hawaii Medicaid program, which is a federally funded program administered by the states. By designing a thorough Medicaid and Asset Protection plan, financial security and peace of mind can be ensured for the spouse living in the community (Community Spouse) and a legacy can be preserved for children. Without a sophisticated plan the community spouse may not be able to maintain his or her standard of living. It is important to understand and investigate the above options to know what will best protect your assets from long-term care expenses.

Although many people may be told that they must “spend down” their loved ones’ assets or that their loved ones must be impoverished before they are eligible for Hawaii Medicaid benefits, planning opportunities exist whereby a person can legally restructure his or her financial situation to qualify for Hawaii Medicaid for nursing home care.

By qualifying for Hawaii Medicaid benefits, the applicant will be covered for nursing home expenses, drugs, doctors, and medical equipment. Therefore, qualifying for Hawaii Medicaid can be worth over $100,000.00 a year or more in benefits to the applicant and/or his or her spouse and family. Currently, there are also government programs that can also assist family members in an assisted living facility.

The Hawaii Medicaid rules for eligibility are confusing and complicated. It is important that planning for Medicaid is only done with a qualified Hawaii Elder Law & Medicaid Attorney so that the strategies used are best suited for your family’s individual situation. By waiting to get expert advice, or not getting it at all, you may spend more money than you should, thus jeopardizing your family’s security.