The attorneys at Abendroth and Russell Law Firm know that caring for an elderly loved one can be a daunting prospect. The high cost of health care has made it almost impossible for the average family to pay for nursing care for a long period of time. Knowing the rules and regulations of long-term care, Medicare, and Medicaid (Title XIX) can help you through this difficult time.
- Medicaid Eligibility. Medicaid is a health program for individuals with low income and few resources. It pays for medical and dental coverage and can also pay for the cost of housing an individual in a residential care facility. Medicaid has three eligibility requirements:
- Continuous Care - The applicant must need at least 30 days of continuous care;
- Income Eligibility - The applicant cannot have an income more than three times the current Federal SSI benefit;
- Resource Eligibility - The applicant cannot have countable resources of more than $2000.
- Rules for Spouses. In 1988, Congress enacted provisions to prevent what has come to be called "spousal impoverishment," which can leave the spouse who is still living at home (called the "community spouse") with little or no income or resources. Applying for Medicaid at the right time can save your spouse thousands of dollars.
- Resource Spend-Down. In order to become Medicaid-eligible, an applicant must have less than $2000 in countable resources. The recipient is allowed to retain one vehicle, miscellaneous personal property, and his or her homestead. Medicaid applicants often need to "spend down" their available resources to come under the $2000 limit. Our attorneys can advise you on the best way to manage your assets to meet the spend-down requirements.
- Miller Trust. A Medical Assistance Income Trust (also known as a "Miller Trust") is a special type of legal entity that preserves a person's ability to receive Medicaid to help pay for residential care facility costs. Specifically, it solves the problem of a Medicaid-eligible person who has income which would make them ineligible for benefits. It is an irrevocable trust, drafted by an attorney, that holds the person's income for their benefit while qualifying them for Medicaid benefits.
- Special Needs Trust. A Medical Assistance Special Needs Trust (also known as a "Special Needs Trust") is a special type of legal entity that preserves a person's assets for their long-term care. It also can protect a recipient's ability to receive Medicaid to help pay for residential care facility costs. Specifically, it solves the problem of a Medicaid-eligible person who has resources (assets) which would make him or her ineligible for benefits. It is an irrevocable trust, drafted by an attorney, that holds the person's assets for their benefit.
- Estate Recovery. Pursuant to Iowa Code Chapter 249A, the State has a lien against any assets of the Title XIX recipient after death. Frequently, this is real estate that the person owned and lived in, but was not counted as "liquid" assets. The State will not force a Medicaid recipient to sell their homestead during their lifetime, but the lien for benefits paid attaches to real estate after death. Our attorneys can assist you in determining the extent and scope of an Estate Recovery lien.
Contact one of our elder law lawyers to learn more about the legal options available to ensure that your loved one receives the best possible care.