As people grow older, they sometimes need care that’s not possible at home. This can sometimes mean that they need to go into long-term care, which is a costly undertaking. In New York, Medicaid can cover the cost of nursing homes, assisted living programs and income care for people who qualify.
Eligibility for Medicaid for long-term care is based on income and assets. Because of this, preparing in advance is one of the most important steps a person can take.
Income and asset limits
There are strict financial thresholds for Medicaid in New York. To qualify, applicants must meet income and resource limits. These vary depending on whether their care is at home or in a facility. These limits change each year, so it’s important to review the current figures before applying. Taking an inventory of income sources, savings, property and other resources can help people to understand if they will qualify for Medicaid.
Asset protection
One common misconception is that people have to spend down their savings before Medicaid will help. The fact is that there are some assets that are exempt. These can include a certain amount of equity in their primary residence, certain personal belongings, and some retirement accounts. Medicaid has a five-year look-back. So transferring assets at the last minute can cause delays or ineligibility.
Anyone who’s starting to worry about what will happen as they age should ensure that they’re taking steps to protect their assets and their eligibility. Starting this as soon as possible may help to avoid issues with the look-back period.