Severna Park Medicaid Planning Attorney
Many residents of Maryland will end up relying on skilled nursing home care, or living in an independent or assisted senior living facility. For many, the biggest hurdle is giving up a part of their independence. For many others, simply being able to afford this type of care is questionable. This is a real and common fear for any older person to have, regardless of their income. After all, a nursing home stay can costs anywhere from a six or seven thousand to tens of thousands of dollars per month. Spending one year in an average Maryland nursing home costs over twice as much as a year of tuition at Harvard. How is it even possible to afford this type of high-quality care without going bankrupt? Fortunately, there are ways to plan for long-term care, either in a nursing home or other assisted living facility, that do not require you to give up every hard-earned penny in you savings and retirement accounts. An experienced Severna Park Medicaid planning attorney with Frame & Frame can provide more information.
Why Are More People Considering Medicaid Planning?
Rising Cost of Healthcare: The U.S. spends well over $3 trillion on healthcare each year, with the cost of healthcare rising faster than the rate of inflation at 5.8 percent in 2015 alone, according to Morgan Stanley. In 1960, the cost of healthcare was just five percent of the national economy, while today it is 18 percent and by 2025 it is projected to be 20 percent, according to CNN Money.
Older Population: An aging population means that an increasing percent of the population will be living in assisted living, independent living, or nursing homes. Nowadays, just 15 percent of the population is over 65, but by 2060, 23 percent of the population will be, according to the S. Census Bureau. Nearly 100 million Americans will be over 65 by 2060, almost twice the number that currently are. While the average life expectancy has only recently stagnated in the U.S., advances in medicine are expected to keep people living longer than ever before in the future.
The Basics of Medicaid Planning
Medicaid is a federally funded healthcare program that many people associate with low-income families. However, you do not need to be low-income to qualify for Medicaid benefits that pay for long-term senior care. You do, however, need to create a Medicaid planning trust that sets aside your assets and reduces your net worth. The assets in this trust can be used for all of your basic needs like transportation, food, vacation, clothing, etc., while Medicaid pays for your care expenses such as:
- Prescription drugs;
- Outpatient services;
- Nursing home care; and
Contact a Severna Park Medicaid Planning Attorney Today
By putting aside your property, you also save your assets for your beneficiaries. Instead of having to sell the family home, sell your stocks and bonds, and use up everything in your retirement account to pay for your nursing home care, you can leave these assets to your children and grandchildren, and still be able to receive the highest quality medical care and home care in Maryland. However, this is only possible by working closely with an attorney. Call or contact the Severna Park Medicaid planning attorneys of Frame & Frame today.