With the assistance of Legacy Law Center, many Louisiana residents engage in a practice known as Medicaid Planning. However, many who hear about this strategy carry little knowledge of what it is, and how it works. So what is Medicaid Planning? Simply put, Medicaid Planning in Louisiana is a strategy whereby individuals intentionally shift assets out of their names so that they will qualify for long-term care Medicaid coverage in the future. Preservation of the shifted assets is the goal. In this 4 part series, we will explore the why, how, and when regarding Louisiana Medicaid Planning.
Why Engage in Medicaid Planning?
Extended care in the home or skilled nursing facilities is a sad reality for many aging Louisiana residents. Many commonly refer to this type of care as “long-term care”. Medicare, which most seniors receive, unfortunately does not cover care needs extending beyond a maximum of 100 days. As a result, Louisiana seniors needing permanent care foot the bill for almost all the care costs incurred after the first 100 days.
Some families are fortunate in that they posses enough resources to offset long-term care costs without seeing a depletion of their resources. Some families have insurance beyond Medicare that covers long-term care expenses. However, the a large number of Louisiana families don’t have sufficient wealth or insurance for their potential care needs. For these families, spending on long-term care occurs with anywhere from $5,000-$10,000 per month depleted. Once the patient depletes resources to low enough levels, they become Medicaid eligible. Sadly for those who fail to plan, Medicaid eligibility only occurs after hundreds of thousands of dollars have been spent-down on the high costs of long-term care.
In part 2, we will explore the Medicaid eligibility limits. Seeing these limits helps fame our understanding of how much needs to be shifted during the Medicaid planning process. If you are interested in exploring Medicaid Planning to protect your family’s assets call Legacy Law Center at (504) 274-1980 in Metairie, New Orleans, and surrounding areas or call (985) 246-3020 in Mandeville, Covington, Slidell, Houma, and Thibodaux.