Annapolis Medicaid Planning Attorney
As adults age the healthcare costs increase. On top of more frequent hospital visits and more prescription medications, the inflation for medical care is more than it is for traditional inflation. According to Money, medical inflation in 2018 was around 4.2 percent while general inflation was only at 2.7 percent. This means a person who is living on a fixed retirement income will be forced to spend a greater portion of their income on healthcare as they age. While there are options such as Medicaid and long-term care insurance, these require eligibility and many Maryland residents worry about how they will afford proper care in the final years of their life. The key to Medicaid planning is to begin evaluating your assets and how they affect your eligibility well before you or your spouse unexpectedly have health concerns. An experienced Annapolis Medicaid planning attorney can help you budget for long term care while still protecting your assets.
What is Medicaid?
Medicaid is a federal-state healthcare system. It is often associated with helping low-income individuals with healthcare, but it is also a program that helps elderly adults afford the rising costs of healthcare that come with aging. It can cover the following medical expenses:
- Hospital bills;
- Doctor’s visits, labs services, and outpatient care;
- Medicare Advantage Plan; and
- Prescription drugs.
According to Maryland Medicaid, over 42,000 residents receive long term services and support, either in their home or in a community setting such as a nursing home.
Why Consider Medicaid Planning?
In addition to healthcare costs rising faster than inflation, Americans are living longer into old age. This means people need to be planning for the care they will need if they live a long life. If you are not low-income but think you will need assistance paying for long-term senior care, it is wise to create a Medicaid planning trust that sets aside part of your wealth for basic needs such as transportation, food, clothing and reduces your net worth so that you qualify under the Medicaid eligibility. Then Medicaid can cover the costs of the healthcare such as:
- Nursing home care;
- Home health aides;
- Outpatient services;
- Prescription drugs; and
When applying for Medicaid, the program will look back at all assets transferred out of your name within the last five years. If you plan to transfer assets to a spouse or children, it is best to do this when you are healthy and well in advance of requiring support from Medicaid. It is not too early to start speaking with an attorney about Medicaid planning while you are still in your 50’s or nearing retirement.
Contact an Annapolis Medicaid Planning Attorney
It is easy to ignore the future when you are fit and healthy, but planning for your retirement years is a financially responsible step to take. The Medicaid planning attorneys at Frame & Frame can assess your wealth and how to plan your estate so that you can qualify for Medicaid when the time is right. Call our Annapolis offices at 410-255-0373 to schedule a no-obligation consultation.