Many families are learning how expensive it is to care for an aging family member. They remember the days of raising children and how they thought doing so was costly. The money they spent on their kids may be a drop in the hat compared to what they will pay to care for their parents. When the senior runs out of funds, the family may need to pay the cost, exhausting their resources.
Families wonder how they can cover these costs without going bankrupt. Medicaid is one option families should consider. Quality Medicaid Care can help families navigate the system and learn how to pay for the care their loved ones need.
What is Medicaid?
Medicaid is a government healthcare insurance provider. Seniors may benefit from this program when they need long-term care and have no funds or assets to cover the cost. This program is the largest payer for long-term care services. It provides support for the elderly and disabled needing this care. However, many individuals find they must spend down their resources before they qualify for the program.
Medicaid requires states to collect long-term care service costs when a person dies. States may also limit a person in terms of what they can bequeath to beneficiaries, making it more challenging to create generational wealth. Many Americans feel it is unfair to expect someone who has spent their life accumulating modest assets to have to turn these assets over because they need care in their senior years.
Long-term care insurance is an option, but few people invest in this coverage. They rely on Medicaid to help pay for this care. It provides them with a lifeline during challenging times.
The Cost of Long-Term Care and Support
Experts predict the life expectancy of the average American will rise again now that the global pandemic is over. They believe the average person will spend approximately $138,000 for long-term care and support during their senior years. Some people will need significantly less, while four percent are predicted to need almost double this amount. Medicaid won’t be able to cover all of these expenses, but it can help those in dire need.
Fixing This Issue
Medicaid should eliminate the spend-down requirements to help more people. Other methods must also be used to ensure every person can obtain the care they need as seniors. One way is to encourage people to invest in long-term care insurance. People may need to undergo a means test to determine how much they should pay toward long-term care services and support each year rather than spending down their assets.
Individuals can plan for the future when they have all the information about their retirement funds. They will know how much they may need in long-term care services and how much they can expect to receive from Medicaid for this care. Furthermore, people must remember they can pay for this insurance with funds from their health savings account. Current law allows the limited use of these funds for that purpose.
Medicaid is a lifeline for people during challenging times, but people should not rely solely on this government program to cover their long-term care needs. Seniors deserve the highest quality of life, and planning for the future can help a person ensure that is what they have. Learn more today to see how Medicaid can supplement a person’s funds for long-term care as they age.