| Medicaid is a public welfare program that is funded by federal and state governments. This program, also known as Title XIX of the Social Security Act, is designed to provide medical and health-related services to certain low-income families and individuals. In order to qualify to receive benefits from this program, you must meet its guidelines for income and assets. You may have to spend down or use up your assets on health care before you qualify.
People often find loopholes within any system. The loopholes people have found in the Medicaid system have forced some controls and legislation. Some things to keep in mind:
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A look-back period exists to examine an applicant's financial history. |
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Home health care is limited so you may have to move to a nursing home before you are ready to. |
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You must go where there is a bed available, which could restrict your choice of location. |
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Your choices are limited. |
On Feb. 8, 2006 President Bush signed the Deficit Reduction Act of 2005 (DRA) into law and changed the ground rules for long term care financing. With many existing loopholes now closed, Medicaid will no longer be a tax-payer funded strategy for people who fail to save, invest or insure for long term care. With these new rules - and the increased difficulty in complying for Medicaid eligibility - the easiest way for many to prepare for a long term care need is to purchase long term care insurance coverage.
Medicaid guidelines vary by state. Contact your local Medicaid office for details.
For more information regarding benefits provided by Medicare or Medicaid, visit the Centers for Medicare and Medicaid Services Web site.
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