Myth 1: “If my spouse or I go into a nursing home on Medicaid, we will receive substandard care.”
Truth: Medicaid is just a billing issue, not a health issue
Myth 2: “I must spend down all my assets until I’m broke to qualify for Medicaid.”
Truth: With proactive planning, you may be able to protect most if not all your assets
Myth 3: “If my spouse or I go into a nursing home, the state will take my home away.”
Truth: Your home is an exempt asset and there are tools available to keep the home from being recaptured by Medicaid.
Myth 4: “If I give away assets, I have to wait 60 months to qualify for Medicaid.”
Truth: Medicaid “looks back” 60 months to see what transfers you have made, but this is not the penalty period. The actual wait can be shorter or much longer
Myth 5: “I am already in a nursing home, it is too late to shelter any assets.”
Truth: You may still be able to protect some of your assets, no matter how long you have been in a nursing home
Myth 6: “I can give away $16,000 a year per person without penalty.”
Truth: This is a Federal Gift Tax limitation and has nothing to do with Medicaid eligibility.
Myth 7: “My assets are already protected because they are in a living trust.”
Truth: A living trust does not protect your assets from Medicaid.
Myth 8: “There is only a small chance I’ll end up in nursing home. I won’t need Medicaid.”
Truth: Seventy Percent (70%) of people 65 years are older will stay in a nursing home sometime during their lifetime.
