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Beware Of This Medicaid Trap! Contributed by Dean Fuelling-SD My folks worked almost 50 years on a farm in Iowa and managed to save a little nest egg for their future years. They inherited a few thousand dollars that went into their savings. After retiring from the farm, they lived modestly, drawing a small Social Security check each month. They had a Medicare supplement insurance policy, which covered most charges except medical prescriptions. One day Mom fell and broke her hip. She was in the hospital several weeks and then several more weeks in a nursing home. When she got out, Dad thought he could take care of her at home. Soon we realized he couldn't handle this and take care of the house too, so we got them into a senior apartment complex. This was okay until Mom's memory started to really drop off. We had to put Mom in a nursing home for patients who need special care. It was at this time that we found out that neither Medicare nor Medicaid would take care of the cost anymore. The nursing home is around $3,500 per month plus medication which is $150 per month. We applied to our state's Social Services but were turned down because of my folks' savings, which amounted to $104,000. This amount was split between Mom and Dad. In order to qualify for Medicaid, Mom needed to "spend down" her share to less than $2,000 before any state Medicaid would be considered. Dad's half is protected for the time being, but if something happens to him and if he ends up in a nursing home, the same applies to him. After talking to a lawyer, we found out that we should have taken some measures many years before to protect our folks savings. We learned too late that any gift we children received of property or money given 3 years prior to entrance into the nursing home is considered the same as money still in the bank. There are certain things that could have been done to protect his savings, but Dad thought because he had insurance and Medicare, things would be okay. Protect yourselves. You worked too hard for the money you saved to have it taken by medical expenses, which can wipe out a savings account very quickly. Don't get caught short, do something about it today. This article first appeared in Volume 4, Issue 9 of "The Social Security and Medicare Advisor" newsletter (September/1999). To receive future editions of "The Advisor" in its special, free e-mail version, please click here. | ||||||||
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