Medicaid Myths and Common Misconceptions
Everyone that you know likely has an opinion about Medicaid for skilled nursing care. Let's debunk some of those myths:
Myth: Medicaid (or the Nursing Home) will take your house.
Reality: While each state has some form of estate recovery, including Michigan, the state cannot take your home during your lifetime. If you do not take steps to avoid the probate process after you die, the State of Michigan does have the ability recover assets from your estate. With careful planning we can help you protect and preserve your home.
Sarah, widowed, age 88, required 24-hour care and transitioned into a skilled nursing facility. Sarah's family worked carefully with an Elder Law Attorney to plan for Medicaid and establish a plan to protect her home. By using a Ladybird Deed, Sarah was able to place a beneficiary designation on her home and it transferred directly to her children upon her passing. This strategy avoided the probate process and protected her home from being recovered by the State of Michigan.
Myth: Medicaid is only for the very poor.
Reality: While income and assets factor into your eligibility, there are special rules for married couples and planning strategies that can be implemented to obtain eligibility for both married and single individuals. These strategies can be complicated, and the assistance of an Elder Law attorney is highly recommended.
Single individuals are permitted to keep countable assets of less than $2,000.00 each month. Married couples are permitted to keep 50% of their countable assets up to $154,140.00 (based on the 2024 Bridges Eligibility Manual). With the assistance and Elder Law Attorney and strategic planning, additional assets can be preserved.
Myth: You have to give all your assets away to qualify.
Reality: The opposite is true! If you give your assets away, you will be disqualified for Medicaid. Giving assets away is referred to as divestment and divestment results in a penalty. It is possible to have assets including but not limited to your home and vehicle and still qualify for Medicaid. With specialized planning, we can help you protect and preserve your assets.
Myth: Medicaid is only for health insurance.
Reality: Medicaid programs can also assist you with the cost of Long-Term Care Skilled Nursing benefits, provide you with in-home care (MI Choice Waiver) and daily assistance/enrichment (PACE).
Myth: Medicare will pay for everything Medicaid does.
Reality: Medicaid and Medicare are not the same. Medicare is a federal health insurance benefit for those over the age of 65 or those with qualifying disabilities. Medicaid is a federal program, but is state driven and each state has its own qualifications for coverage. Importantly, while both Medicare and Medicaid provide health insurance for many individuals, ONLY Medicaid provides assistance to qualifying individuals to assist with the cost of skilled nursing care and the average cost of a nursing home in Michigan is over $10,000.00 per month.
Myth: You can't have Medicaid if you're already receiving Social Security.
Reality: Receiving Social Security does not disqualify an individual from receiving Medicaid. Many people who receive Social Security benefits may still qualify for Medicaid depending on their overall income and assets.
Contact Great Lakes Family Probate & Estates to schedule a consultation with one of our qualified Elder Law attorneys to learn more.
