Medicaid Misconceptions

There have always been questions about what the rules are concerning Medicare and Medicaid.  Medicare seems to have been more straightforward than Medicaid – most people are more confused by Medicaid.

Some of the most common misconceptions about Medicaid involve what you are allowed to have or keep and what you are not allowed to have or keep in the way of money, property and other assets. 

One misconception is that if a person has Medicare they don’t need Medicaid. This is not exactly true.  The way this actually works is that Medicare covers a lot, but not long term care in nursing homes.  Medicaid covers long term care and some other issues involved with it.  Other people fear that if they go into a nursing home the government will take away their home.  This is not true.  They are allowed to keep their home, their car and various other things, including a burial policy if they go into a nursing home.  In addition, the state will not take assets.  They will not pay Medicaid benefits until your excess assets are valued at $2,000 or less (not including your house, car and other exempt items).  Their rules state that you cannot have over $2,000 in the bank or stocks, etc. and Medicaid pay for your medical expenses.  You are allowed to “spend down” your money to $2,000 so that Medicaid will start paying.

Many individuals find out that they can be eligible for Medicaid coverage, so they decide not to look into Long Term Care coverage.  Long Term Care coverage can help you in a number of ways, including allowing you to stay home for treatment if possible and also cover an adult foster care home or assisted living facility.  This gives you more choices, as Medicaid only covers specific nursing homes only; long term care coverage lets you choose where you will be treated to an extent, depending on the extent of care you need.

There are other misconceptions regarding Medicaid.  It is important that you know the truth of how Medicaid actually works so that you understand your coverage and the effect on your assets.  Talk to a financial planner, attorney or accountant who has experience in this area.

For further information go to www.cms.hhs.gov/ .