As the Colorado resident ages, it is possible that he or she will require care that loved ones are not able to provide. When this happens, it is likely that the individual will need to be placed in a nursing home. While this may be what is best for all involved, without proper Medicaid planning, this can also be a costly venture.
The average cost of nursing home care exceeds $8,000 per month. If the family or individual is responsible for this payment, assets can quickly become non-existent. Yet, for the average Colorado family, there appears to be no choice but to continue to deplete assets until they are gone.
With proper Medicaid planning, however, it is possible for the family and individual to retain assets and still receive the care needed. There are certain assets that the individual is allowed to keep and still qualify for Medicaid benefits. For example, the individual can keep a home as long as its equity does not exceed the legal limit, which is currently a little over $570,000. Additionally, the individual can keep a car and prepaid funeral expenses up to a specified dollar amount.
In addition to assets that the Colorado resident is able to keep, there are also expenditures that the individual is able to pay and still retain Medicaid eligibility. Legal expenses, home improvements, automobile purchases and other such items are allowed. Maintaining Medicaid eligibility is a primary goal for most Colorado residents who expect to one day require nursing home care. Experienced legal counsel can help one review the various aspects of Medicaid planning and devise a plan that fits the individual’s and family’s needs.
Source: thetimesherald.com, “Common questions about nursing home Medicaid eligibility“, Matthew M. Wallace, Feb. 23, 2018