Medicaid is something that is used by many but understood by very little. Although it’s a national program, it is governed by each state. Which means the rules and regulations are steadily changing and can vary widely from state to state. In this article, we will be taking a look at the most common misconceptions of Medicaid. Enjoy!
Myth 1. There’s no need for a health care power of attorney or living will because the family knows what you want.
Yes, out of everyone in this world, the people that know you the best are most likely going to be your family. But that doesn’t mean that they will know what decisions are best to make, when it comes to handling your business. Having the right people there at the right time to help make those crucial decisions when you can’t, can make all the difference. But even further, having your most important life decisions together, in a legally binding document, can simply mean that your family doesn’t have to be burdened with making such important decisions without knowing for sure if you would have wanted it that way yourself and it can turn a horrendous situation into a smooth transaction.
Myth 2. Medicare pays for all medical conditions, even ones lasting longer than 90 days.
The truth about Medicare is that it’s a primary health insurance provider for seniors that takes care of limited amounts of services for a limited time period. Unfortunately, it doesn’t pay for all long term care needs.
Myth 3. If I need Long Term care, you can just buy long term care insurance.
It may be possible to find a service to provide insurance for long term care but it may cost you an arm and a leg just to get it. It’s best to sign up for it when you’re healthy and just planning for the unexpected.
Myth 4. You can qualify for care assistance by giving your assets away just before you go into a nursing home.
Giving away your assets could work if you do so at least 5 years before applying Medicaid. If you are within that 5 year period though, you are going to need a comprehensive Care Assistance Plan in place.
Myth 5. There’s no need for a comprehensive Care Assistance Plan.. my friend/neighbor/barista just did “x” and everything turned out OK.
It is a huge mistake to assume that everything will be simple and easy just because someone found it to be. It is based solely off of your situation. There are more than 200,000 regulations surrounding the Medicaid portion of Care Assistance Planning. Also there are many combinations of strategies and techniques that can be used depending on you and your families situation.
