MDNews - Cleveland-Akron-Canton

+++++++++++++++++++ + +++ + +++ +++++++++++++++++++ LEGAL EASE ❯ Maneuvering Through the Maze of Medicaid: What You Should Know Before Planning (Part II of II) By Stephanie Haight, Esq. IN PART I, WHICH APPEARED ON PAGE 28 IN THE JULY/AUGUST ISSUE OF MD NEWS, WE BRIEFLY SUMMARIZED SOME OF THE KEY RULES OF WHICH TO BE AWARE WHEN CONSIDERING LONG-TERM CARE PLANNING. After understanding the basics, the next step is determining which planning technique is the best option for a particular situation. One option is to spend down the applicant's assets until he or she is eligible for Medicaid. A married couple would have to spend down to the amount the community spouse may keep as his or her Community Spouse Resource Allowance. A single individual would have to spend down assets until he or she was left with $1,500 in assets. How the assets are depleted will be scrutinized, and it is important to strategize how to best accomplish the spend down. A combination of spending down assets and utilizing other planning techniques should be considered. There are services and items for which Medicaid will not pay. For example, there are limitations on the costs Medicaid will cover relating to hearing aids. Also, Medicaid only covers the cost of a shared room, and some applicants will prefer a private room. Planning to set aside funds for the costs of items not covered by Medicaid can significantly improve the applicant's quality of life. If there is enough advance warning that long-term care will be needed, planning can be done to preserve assets. An elder law attorney can assist with the preparation of a five-year plan. The goal is to be eligible for Medicaid at the end of that five-year period. Even in a crisis situation with no advance notice, there is still planning that can be done to set aside funds that can be used to supplement the applicant's services. For example, if certain estate plan documents are in place, a pooled trust can be used to quickly obtain Medicaid eligibility and preserve assets to pay for a wide range of supplemental services not covered by Medicaid benefits. Because the Medicaid recipient's own funds are put in the trust, there is a Medicaid payback provision, but a contingent beneficiary may be named, in the event there are funds remaining after the Medicaid payback has been made. It is important to determine the best planning option for your situation. The Medicaid rules and long-term care planning techniques are complicated and frequently change. Engaging an elder law attorney to provide guidance can make a significant difference not only to the applicant, but to the entire family. 1. NOTE: This general summary of the law should not be used to solve individual problems since slight changes in the fact situation may require a material variance in the applicable legal advice. Stephanie Haight is an attorney with the law firm of Krugliak, Wilkins, Griffiths & Dougherty Co., LPA, in Canton, Ohio. ■ 2 4 | Cleveland/Akron/Canton MD NEWS ■ M D N E W S . CO M ■ S E P T E M B E R /O C T O B E R 2 0 1 5

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