Logic Insurance, Long Term Care Insurance -The most commonly utilized and misunderstood aspects of the U.S. Medicaid program are its long-term care (LTC) benefits. Medicaid is not synonymous with long-term care insurance, but many who plan to rely on it are unaware of this. As a result, they find themselves without the care they really need or desire.
Before you "plan" to have Medicaid cover your LTC needs, it is important to understand its coverage and how it differs from LTC insurance. (One program is for the poor; the other is for the elderly. Learn which is which in What's The Difference Between Medicare And Medicaid?)
Medicaid LTC is a great benefit for those people who didn't necessarily have the chance to accumulate much, and now need LTC services beyond what their families can (or will) provide.
Some individuals, however, deliberately decide not to buy long-term care insurance, "planning" to use Medicaid instead. There is an entire legal specialty that focuses on helping older Americans bankrupt themselves in order to qualify for Medicaid benefits. Unfortunately, many of these people find out too late that Medicaid does not offer what they desire - the same choice, benefits or coverage options provided by LTC insurance.
Unlike Medicare, which is largely a federal program, Medicaid is primarily state-run, resulting in varying degrees and types of LTC coverage.
Medicaid generally requires you to be unable to perform at least two of these six ADLs independently - much like LTC insurance policies. (See Long-Term Care Insurance: Who Needs It?) If you qualify for Medicaid by meeting the ADL requirement and your state's income and asset requirements, you can probably use Medicaid to pay the entire cost of care in a nursing home. (Janet Arrowood - http://www.investopedia.com/articles/05/031005.asp)
Before you "plan" to have Medicaid cover your LTC needs, it is important to understand its coverage and how it differs from LTC insurance. (One program is for the poor; the other is for the elderly. Learn which is which in What's The Difference Between Medicare And Medicaid?)
LongTerm Care Insurance Benefits
Medicaid is a multi-part program designed to provide a wide variety of medical and custodial services to those who cannot afford it. It evolved during the so-called war on poverty in the 1960s as a program for the truly poor - the indigent population who were surviving on less than about 125% of the official poverty level. (For more on poverty guidelines, see the website of the U.S. Department of Health and Human Services.)Medicaid LTC is a great benefit for those people who didn't necessarily have the chance to accumulate much, and now need LTC services beyond what their families can (or will) provide.
Some individuals, however, deliberately decide not to buy long-term care insurance, "planning" to use Medicaid instead. There is an entire legal specialty that focuses on helping older Americans bankrupt themselves in order to qualify for Medicaid benefits. Unfortunately, many of these people find out too late that Medicaid does not offer what they desire - the same choice, benefits or coverage options provided by LTC insurance.
Medicaid LTC Benefits and Requirements
Generally speaking, for qualifying people, Medicaid covers custodial care in a nursing home in all states. Custodial care is for when you can't perform some or all of the activities of daily living (ADL) without assistance:- Dressing
- Bathing
- Transferring
- Walking
- Feeding
- Toileting/continence
Medicaid generally requires you to be unable to perform at least two of these six ADLs independently - much like LTC insurance policies. (See Long-Term Care Insurance: Who Needs It?) If you qualify for Medicaid by meeting the ADL requirement and your state's income and asset requirements, you can probably use Medicaid to pay the entire cost of care in a nursing home. (Janet Arrowood - http://www.investopedia.com/articles/05/031005.asp)
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