Many people who are eligible for Medicaid can also receive SSI-G - a subsidy of up to $1,000 per month from Social Security to cover the rent. Options for Help Paying The Cost of Assisted Living Since Medicare does not help pay for assisted living services, many seniors are stuck with a dilemma. They need to help with some of their daily activities but they cannot afford to live in an assisted living facility. Two options for generating income for a temporary stay in an assisted living facility include reverse mortgages and life settlements. A reverse mortgage is similar to a home equity line in that you take the money out of your home slowly. It differs in the fact that there are no payments to be made at the loan and the loan is usually settled as part of the estate. These loans can be a very quick and painless way for seniors to pay for their stay in an assisted living facility. And life settlement allows a senior to sell an existing life insurance policy in exchange for a cup for a lump sum. This is especially good for seniors who do not have dependents and no longer need their life insurance policy as part of their estate. For a senior in his/her 80s, a $250,000 life insurance policy can generate up to $100,000 in a life settlement. The spend-down provision is that "you must self pay" for your nursing home care with the sale of all your personal and real assets to the point of financial devastation of your life's savings driving you into financial destitution. Nursing home eligibility will be determined by your lack of any available resources designed specifically to punish/impoverish your healthy spouse. This means that if one spouse needs private care, the other spouse needs to spend every dollar they have before the government will help with the costs! Why is Medicaid Estate Planning Important? The problem with the 5-year look back provision is that the new Medicare regulations do not consider the healthy spouse. It's a social punishment of the marriage certificate. It's a new social discrimination based on health. Eventually seniors will be forced to choose divorce for the sake of retaining their financial dignity. What's happening with the Medicaid Health Care System? The gross mismanagement of the social security system is going to force baby boomers into giving serious thought about their long-term health care. There won't be any money by the time baby boomers reach retirement age. Health care has been escalating at an alarming pace. Government planners have figured out that they can save $10 billion over the next 5 years by increasing the look back provision from 3 years to 5 years. What's the 5-Year Look Back for the Nursing Home Program? Before you qualify for the government nursing home assistance program, there is a 60 month look back to see if and when you transferred your assets for less than fair cash value or you transferred your assets into a trust system or any system of transferring your wealth for the purpose of becoming eligible for the nursing home program depriving the state of all your available resources for your long-term health care.2
News and Information