medicaid planning in new york
DESCRIPTION
Learn more about Medicaid basics, the fiver year look back period and how Medicaid planning in New York can help you deal with long-term care costs.TRANSCRIPT
MEDICAID PLANNING IN NEW
YORK
THE NEED FOR LONG-TERM CARE
The average life expectancy of an American has increased
about 30 years in just over a century
We still face the same age related medical problems as
we age
ALZHEIMER’S alone is now the 6th leading cause of death in the United
States
1 in 3 seniors will die with the Alzheimer’s or a similar
disease
2 in 5 seniors will need long-term care at some
point
By 2050, experts estimate that the number of people using long-term
care services will be around 27 million – double the number who
were using long-term care in 2000
WHY YOU MAY NEED MEDICAID
In New York, 1 in 5 seniors depends on MedicaidNeither Medicare nor most private healthcare policies cover long-term careIn New York City, the average cost of a year of long-term care is $136, 200Medicaid does cover long-term care costs
NEW YORK MEDICAID BASICS
MEDICAID is intended to provide
healthcare coverage for low income individuals and families
Medicaid is primarily federally funded but state administered
Applicants must meet income and resource guidelines to
qualify
In New York, a senior applying for Medicaid cannot have
countable resources of over $14,550 ($21,450 for a married
couple) as of 2014
Income and resource limits are slightly different for long-term care benefits depending
on the applicant’s circumstances
Not all assets are countable resources
A home, vehicle and personal belongings, for example, ARE USUALLY EXEMPT
FIVE YEAR LOOK-BACK PERIOD
Medicaid employs a five year “look-back” period
when evaluating an application
Typically, the value of the asset transferred during the look-
back period is attributed to the applicant as if the transfer was
never made
If your assets exceed the program limit as a result of transfers made during the
look-back period, you will incur a penalty period
Length of the penalty period
is calculated by dividing the value of the asset by the average
monthly cost of long-term care in your area
MEDICAID PLANNING
At this point you likely have a better understanding why
Medicaid Planning is so important
Starting early is the key to ensuring that you will qualify for Medicaid benefits to pay
for long-term care should you need it at some point in the
future
Medicaid planning is perfectly legal
However, the laws are complex and ever-changing which is why
you should depend on your estate planning attorney for guidance and assistance when creating a
Medicaid plan
LEARN MORE ABOUT SUPPLEMENTAL NEEDS TRUST IN NEW YORK
LEARN MORE ABOUT MEDICAID PLANNING IN
NEW YORK
www.bartonlevine.com(888) 268-4425
Law Offices of Barton P. Levine