The average monthly cost of long-term care skills in Pennsylvania is about $ 11,000, forcing most families to rely on Medicaid to help pay for long-term care. To qualify for Medicaid in 2021, if the applicant’s total income is $ 2,382 or more per month, the applicant can have a countable asset of $ 2,400 or less in his or her name. If the applicant’s income is less than $ 2,382 per month, the applicant may have countable assets of $ 8,000 or less. However, if you are married and only one spouse needs care, your spouse at home will usually have half of the total available resources the couple has in their name in 2021. It is allowed to hold up to $ 130,380. Community spouse resource allowance.
Once the couple has determined the value of the countable asset and the community spouse resource allowance has been calculated, the applicant must use up half of the asset to be eligible for Medicaid benefits. Half of the countable assets should be used up to a limit of $ 2,400 or $ 8,000, depending on the applicant’s total income. If spending is not important, the couple can purchase a burial account, a new vehicle, or other spending item to qualify for Medicaid. However, if spending reductions are more important, it may be beneficial to buy a Medicaid-compliant pension. For example, if the couple’s total countable assets are $ 200,000, the spouse in the community can maintain $ 100,000 and the spouse applying for Medicaid must spend the remaining $ 100,000 on $ 8,000 or $ 2,400, depending on their income. there is.
Medicaid-compliant pensions can reduce excess resources and provide a source of income for spouses at home. Therefore, in the above example, you can use up the additional $ 100,000 by purchasing a Medicaid-compliant pension. The Medicaid pension is an immediate pension, the period cannot exceed the life expectancy of the spouse in the community, and the monthly payment is fixed. In addition, the pension is irrevocable and non-transferable. One pitfall is that the beneficiaries of this pension must be the Pennsylvania Human Services Department to the extent that they have taken care of their spouse. Under Pennsylvania law, the spouse of a community has the right to retain all of his income, no matter how much. Therefore, when the Medicaid pension pays the spouse, the spouse is allowed to maintain the full pension payment.
The use of Medicaid-compliant pensions is complex. Therefore, it is important to work with an experienced elder lawyer when applying for Medicaid and using your pension.
The legal advice in this column is by nature general. Talk to a lawyer for advice that suits your particular situation.
Rebecca A. Hobbs, Esquire, is licensed to work in Pennsylvania and is accredited by the National Elders Law Foundation as an elder lawyer with the approval of the Pennsylvania Supreme Court. She is the principal of the law firms of O’Donnell, Weiss & Mattei, PC, 41 High Street, Pottstown, and 347 Bridge Street, Phoenix Building, 610-323-2800, www. owmlaw.com..You can reach Ms. Hobbs [email protected]
Legal Ease: What is Medicaid Pension? | Lifestyle
Source link Legal Ease: What is Medicaid Pension? | Lifestyle