MEDICAID PLANNING IN NEW

YORK

THE NEED FOR LONG-TERM CARE

The average life expectancy of an American has increased

about 30 years in just over a century

We still face the same age related medical problems as

we age

ALZHEIMER’S alone is now the 6th leading cause of death in the United

States

1 in 3 seniors will die with the Alzheimer’s or a similar

disease

2 in 5 seniors will need long-term care at some

point

By 2050, experts estimate that the number of people using long-term

care services will be around 27 million – double the number who

were using long-term care in 2000

WHY YOU MAY NEED MEDICAID

In New York, 1 in 5 seniors depends on MedicaidNeither Medicare nor most private healthcare policies cover long-term careIn New York City, the average cost of a year of long-term care is $136, 200Medicaid does cover long-term care costs

NEW YORK MEDICAID BASICS

MEDICAID is intended to provide

healthcare coverage for low income individuals and families

Medicaid is primarily federally funded but state administered

Applicants must meet income and resource guidelines to

qualify

In New York, a senior applying for Medicaid cannot have

countable resources of over $14,550 ($21,450 for a married

couple) as of 2014

Income and resource limits are slightly different for long-term care benefits depending

on the applicant’s circumstances

Not all assets are countable resources

A home, vehicle and personal belongings, for example, ARE USUALLY EXEMPT

FIVE YEAR LOOK-BACK PERIOD

Medicaid employs a five year “look-back” period

when evaluating an application

Typically, the value of the asset transferred during the look-

back period is attributed to the applicant as if the transfer was

never made

If your assets exceed the program limit as a result of transfers made during the

look-back period, you will incur a penalty period

Length of the penalty period

is calculated by dividing the value of the asset by the average

monthly cost of long-term care in your area

MEDICAID PLANNING

At this point you likely have a better understanding why

Medicaid Planning is so important

Starting early is the key to ensuring that you will qualify for Medicaid benefits to pay

for long-term care should you need it at some point in the

future

Medicaid planning is perfectly legal

However, the laws are complex and ever-changing which is why

you should depend on your estate planning attorney for guidance and assistance when creating a

Medicaid plan

LEARN MORE ABOUT SUPPLEMENTAL NEEDS TRUST IN NEW YORK

LEARN MORE ABOUT MEDICAID PLANNING IN

NEW YORK

www.bartonlevine.com(888) 268-4425

Law Offices of Barton P. Levine