The Difference Between Medicaid Pre-Planning and Crisis Planning

Medicaid is designed to help seniors with limited means afford medical care, including long-term nursing home care. Since Michigan’s Medicaid program imposes strict limits on an applicant’s income and assets, some planning may be necessary to help ensure eligibility. Medicaid estate planning generally falls into two categories: pre-planning and crisis planning.

Crisis Planning

Crisis planning is the more common occurrence. A crisis in this context means any sudden or catastrophic healthcare event. For example, an elderly man suffers a stroke. He is no longer able to care for himself and must be moved into a nursing home.

Full-time nursing care is a major financial responsibility. According to a 2015 survey by Genworth Financial, the median annual rate for a nursing home in Grand Rapids-Wyoming is over $93,000 per year. Medicare and private insurance may not fully cover these costs.

Medicaid crisis planning may be necessary to ensure a low-income person has immediate access to care. Medicaid is known for its rules and complexity, and when time is of the essence, immediate action may be necessary. If a person has too many assets to qualify for Medicaid–but not enough to pay for long-term care–an experienced Grand Rapids Medicaid crisis lawyer can present you with options.

Pre-Planning

Ideally, you can avoid the need for crisis planning altogether with pre-planning. If you have some assets and do not face an immediate medical crisis–but fear you will in the years to come–pre-planning can help bring peace of mind. For example, you can establish a special kind of irrevocable trust to protect your assets without affecting your future Medicaid eligibility. You may also be able to purchase long-term care insurance if you are still concerned you may not qualify for Medicaid.

Whether you need crisis planning or pre-planning, Medicaid is not something you should try and figure out on your own. Any slight mistake in a Medicaid application may lead to a denial of benefits–and leave a family member facing a choice between poverty and foregoing necessary medical care.

Do not let this happen. Our qualified Michigan Medicaid crisis attorneys know how to deal with Michigan’s Medicaid system. Let us help you and your family. Contact the Law Offices of David L. Carrier, P.C., to schedule a consultation right away.