Medicaid Mayhem (I), Two Simple Rules?

"Medicaid is the primary payer of Long Term Care.”

- Vincent Russo

One of my goals for this blog is to make it a place where people can go to get basic questions answered. With that in mind, this post shall be the first in an ongoing series of posts called Medicaid Mayhem. Let’s start today by talking about the standard rules on which the long-term care portion of Medicaid is built. (As an aside, Medicaid and Title XIX are interchangeable terms for purposes of this series.)

The Medicaid system is designed to act as a health insurance provider for low-income, low-net worth people. The theory is that you can apply for and receive government assistance if you cannot pay for your health care on your own. This extends to the nursing home program of Medicaid as well. To receive Medicaid assistance for your nursing home care, you must comply with two major rules.

1. You must have assets with a value of no more than $2,000 total.
   
2. You must contribute all of your income toward paying for your care.

These rules are the guiding principles under which all Medicaid applications are evaluated.

Looks pretty simple, right? It’s not. There are loads of rules on what assets are counted as part of the $2,000 limit and how applications are evaluated for married couples. These rules are what make Medicaid a complicated system. Don’t make major financial decisions in an effort to get on Medicaid. Seek the help of a trusted advisor with knowledge of the system.

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Lawyer Joke of the Day:

An engineer, a physicist, and a lawyer were being interviewed for a position as chief executive officer of a large corporation. The engineer was interviewed first, and was asked a long list of questions, ending with "How much is two plus two?" The engineer excused himself, and made a series of measurements and calculations before returning to the board room and announcing, "Four."

The physicist was next interviewed, and was asked the same questions. Before answering the last question, he excused himself, made for the library, and did a great deal of research. After a consultation with the United States Bureau of Standards and many calculations, he also announced "Four."

The lawyer was interviewed last, and was asked the same questions. At the end of his interview, before answering the last question, he drew all the shades in the room, looked outside the door to see if anyone was there, checked the telephone for listening devices, and asked "How much do you want it to be?"