CONNELLY LAW
Serving Rhode Island, Connecticut and Massachusetts
401-724-9400
Southern New England's Certified Elder Law Attorney
Rhode Island, Connecticut, and Massachusetts
Long-Term Care and Medicaid
"Protect Your Assets, Preserve Your Legacy"
Connelly Law provides comprehensive Medicaid Planning for individuals and families who want to protect and preserve their assets, such as their home and retirement savings, in order to get long-term care benefits in the home or nursing home—all without spending themselves into impoverishment.
Medicaid is a needs-based program with strict income and asset guidelines that change yearly. We meet with clients to explain the current rules and help develop a plan to apply for Medicaid benefits, whether at home, in the community, or in long-term care.
The Cost of Long Term Care
Did you know that seven out of ten people will require some form of long-term care at some point in their lives? The costs of nursing home care are remarkably high and continue to rise each year. The average cost of a semi-private room nationwide is $107,146 annually, while private rooms are even more expensive at $120,304. These numbers are projected to increase to $127,938 and $143,649, respectively, by 2030. On average, seniors need care for about three years, leading to total costs ranging from $321,438 to $360,912. Additionally, long-term care costs in New England are notably higher.
This financial burden of long-term care can pose a significant threat to your home and assets. It's concerning that many elderly individuals have to cover the entire cost of nursing home care using their own funds. Despite years of careful saving, expenses for nursing home care or in-home assistance can quickly deplete your savings within a short period of time.
What About Medicare?
There are often misconceptions about the disparities between Medicare and Medicaid. Despite their similar names, these programs have distinct differences. Medicare is an entitlement program that most individuals become eligible for when they reach the age of 65. Unlike Medicaid, Medicare does not have specific financial qualification requirements.
Under Medicare, Part A can provide coverage for a brief stay of up to 100 days in a skilled nursing facility. However, the eligibility criteria for this coverage are stringent. To be eligible, you must have had a qualified hospital stay, and the facility must admit you for the same illness or injury for which you received hospital care.
Medicaid Planning
Medicaid is the primary source of financial aid for nursing home residents in the United States. To be eligible for long-term care coverage, individuals must adhere to stringent asset thresholds. The application process involves thoroughly assessing an individual's assets to determine eligibility.
The common misconception is that individuals can transfer their assets to loved ones to meet Medicaid eligibility requirements. However, this is not the case. Any asset transfers or gifts are closely scrutinized, with the Medicaid office conducting a comprehensive review of all such transactions over the preceding five years (referred to as the look-back period). Improper asset transfers can lead to severe penalties, including the denial of benefits for an extended period of time.
Navigating the application process and ultimately receiving Medicaid benefits can be an arduous and time-consuming endeavor. Nevertheless, with careful planning and the guidance of legal professionals, individuals can work toward Medicaid eligibility while safeguarding the assets they have accumulated over their lifetime.
Medicaid Crisis Planning
While advance planning is ideal, all is not lost if an emergency arises. When unforeseen circumstances prevent the execution of a long-term plan, a crisis plan may be necessary to safeguard assets for a spouse or children. This immediate plan enables the individual to support their family while still accessing the long-term care they require. Typically, crisis plans involve gifting assets to a person or trust. However, suppose the transfer does not qualify as exempt under Medicaid regulations, such as to a caregiver child meeting specific criteria or to an exempt trust. In that case, the individual will face penalties for the transfer within the five-year lookback period. Despite the penalties, part of the crisis plan is to provide a means for the individual to cover their care expenses during the imposed penalty period.
The Benefits of Medicaid Planning
Medicaid planning is vital to ensure that you or your loved one receives the necessary level of care without exhausting your family's finances. It serves as the most effective method to cover the costs of long-term care facilities or in-home nursing care that private insurance or Medicare may not fully cover, bringing peace of mind to you and your family regarding your financial future.
Connelly Law is equipped to assist you with devising a robust strategy in the event that you require nursing home care within the next year or if you currently need it. Our services extend to Medicaid planning for individuals already in nursing homes. In these instances, our goal is to safeguard your assets to the greatest extent possible, although the process is intricate. It may be necessary to utilize some of your savings to cover care costs, but we will strive to protect as much as possible and mitigate any associated penalties.
Let Us Help
Attorney RJ Connelly III, an experienced and knowledgeable Medicaid planning attorney, can offer several benefits by establishing a solid plan tailored to your specific needs. When providing Medicaid planning or other estate planning services, we invest extensive time in understanding your preferences and goals.
Our life care planning team is dedicated to getting to know you and your family in order to develop a customized plan that meets your unique requirements. Once we have a clear understanding of your objectives, we devise a step-by-step plan to expedite Medicaid qualification for you or your loved one while safeguarding as many of your family's assets as possible. Call us today at 401-724-9400!
Contact Us!
"Southern New England's Certified Elder Law Attorney"
Call Connelly Law Today
Rhode Island Elder Law Attorney
Phone: 401-724-9400
Fax: 401-724-3046
Our office locations
Connecticut
Mystic, CT 06355
860-440-7600
Please note: There will be no appointments available at this location during the summer months.
Rhode Island - Main Office
372 Broadway
Pawtucket, RI 02860
401-724-9400
Massachusetts
East Chop, MA 02557
508-316-2396
by special appointment only
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This website includes general information about legal issues, issues affecting seniors and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. You need to contact a lawyer licensed in your jurisdiction for advice on specific legal issues and/or problems.