Page 33 - Growing Old Without a Plan for Long Term Care is not for Sissies_Neat

Uncle Sam’s Got My Back, Right? 15 and the Defcit Reduction Act of 2005 have made it very clear that both State and Federal governments plan for Medicaid to be a method of last resort for long term care. These laws and others require you to spend most of your own income and assets before becoming Medicaid eligible. Spousal Impoverishment Protection Laws provide exceptions for your home while a spouse or dependent is living there. Also, some of your joint assets may be preserved for your spouse while you are receiving Medicaid benefts. However, Medicaid Estate Recovery does allow Medicaid to place a lien on your estate so that they may recoup their payments on your behalf. Medicaid will require that your income such as Social Security benefts, pensions, 401k disbursements, stock dividends and other retirement benefts be used for your care. Your spouse is allowed to keep all income that is solely in his/her name and up to half of all jointly owned income. If this total does not equal a predeter- mined amount which varies by state, then s/he can keep some of your income also. It is very important to understand the effect relying on Medicaid can have on the income available to your spouse if s/he is able to remain at home. If most of the family’s income is received in the name of the person on Medicaid, this can leave the at home spouse with less available income to meet ongoing fnancial responsibilities such as real estate taxes, utilities, home maintenance and even food. Depending on how the family income is structured, it is possible the at home spouse will be left with just $1,938.75 per month in 2014 ($23,265 per year). This amount is adjusted regularly for infation. (Minimum Monthly Maintenance Needs Allowances are slightly higher in Alaska and Hawaii. Medicaid eligibility is determined at the time you apply for