Medicaid Planning

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Medicaid Planning
Why It Is Important
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Your Golden Years by the Numbers
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There were 9 million people over the age of 65
who needed long-term care in 2012
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12 million people over the age of 65 are
expected to need long-term care by in the year
2020
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40 percent of people who reach age 65 will go on
to need long-term care at some point in their
lives
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75 percent of people who live to age 85 will
need long-term care at some point
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40 percent of the elderly who need long-term
care have income at or below 150 percent of the
federal poverty level
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49 percent of nursing home costs were covered by
Medicaid in 2002
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Just 7.5 percent of nursing home costs were paid
by private insurance in 2002
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The average length of stay in a nursing home is
about 2.5 years
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Median annual cost of assisted living in Illinois
for 2013 was 48,600
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Median annual cost of a semi-private nursing
home in Illinois for 2013 was 62,050
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Paying for Long-Term Care
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The odds are favorable that you, or a spouse,
will need long-term care
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Most private insurance plans do not cover
long-term care costs
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Medicare does not cover long-term care costs
except in very limited circumstances
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Medicaid does cover long-term care costs
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Qualifying for Medicaid
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Medicaid is primarily funded by the federal
government but administered at the state level
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Therefore, both the eligibility criteria and the
benefits offered can vary somewhat by state
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Unlike Medicare, Medicaid is not an entitlement
program, meaning you must qualify for benefits
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All states have an income and asset limit
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Medicaid Planning
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Medicaid has a five year look-back period that
prevents transferring assets just prior to
applying for benefits
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The earlier you plan the better your odds of
protecting your assets and qualifying for
benefits when you need them
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If you did not plan ahead, there may still be
legal strategies you can use to protect assets
and still qualify for Medicaid benefits
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Non-exempt assets may be able to be turned into
exempt assets, for example
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LEARN MORE ABOUT MEDICAID PLANNING IN ILLINOIS
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