Nursing home costs are through the roof. Many people who are not receiving benefits would be qualified now to have those costs paid for by Medicaid, but confusion over the NEW rules deter people from seeking help. Here are the top 3 myths of Medicaid qualification.

Myth #1: There is a 5 year waiting period before you can qualify for Medicaid. There is no waiting period. Many people mistake the 5 year "look-back period" for a waiting period.

The look-back period means only one thing. It is the period of time that you must provide Medicaid with the Medicaid applicant's financial records. It is a disclosure rule, not a waiting period.

Myth #2: If you are already in a nursing home you cannot qualify for Medicaid. This is false. I have successfully qualified many people for Medicaid who are already in a nursing home. Many of them qualified immediately as the result of the work we did for them.

Some do not qualify immediately. They become qualified after a defined "penalty period." The term sounds worse than it is. We actually engineer the imposition of the penalty period. Without it you may never qualify until you are completely broke. The penalty period works in your favor. Our goal to keep it as short as possible under the new rules.

Myth#3: The state will take your home if Medicaid pays your nursing home expenses. The home of a married applicant is one of the "exempt assets." An exempt asset is an asset type that you can own--and go on owning--while receiving Medicaid benefits.

The new rules impose an equity limit of $750,000 on the personal residence. But this is not a problem for most homes these days.

The home of an unmarried applicant is also exempt. However, the "estate recovery" rules apply when you die. This means Medicaid will get reimbursed out of the home's equity.

This is not as bad as it may seem. The amount of reimbursement is far less than the private pay nursing home rate. Also, for many reasons it is often the better strategy to sell the home, then do a plan for qualification with the proceeds of sale.

Conclusion: Medicaid planning is complex, and yes, the new rules have made it harder. But don't be deterred from seeking help. For a consultation just give us a call at 847-674-0200.

Gregory P. Turza, J.D.
Attorney and counselor at Law