Are you prepared for long-term care expenses?
Everyone knows that Medicare is a health insurance program primarily for senior citizens. Everyone knows that this is a health care insurance program primarily for seniors. There is a huge gap in the long-term coverage, which is a major elder issue. We will take a look at that issue in this post.
Long-Term Care
Medicare will cover convalescent care after an injury or illness when recovery is anticipated. If you are in a nursing facility, the care you receive would be considered custodial. This type of care is not covered by Medicare. It’s an unfortunate reality that many people find unfair. This is particularly true if you have been retired for many years. Genworth Financial has been conducting research on an annual basis to measure the long-term care costs around the country.
According to their study, the median annual cost for a private room in Oklahoma City in 2024 is $96,808. The average length of stay is one year, and 13 percent of people who require paid care receive assistance for more than five years.
Genworth is providing projections for the future as well. They estimate that a private room at a nursing home in Oklahoma City in two decades will cost just under $170,000. It’s hard to imagine a time when you can’t take care of your own needs, especially if you have been able to do so all your life. It’s human nature. But when you look at statistics, you get a compelling picture. Things can be very different when you are an octogenarian.
According to the United States Department of Health and Human Services, just over half of elders will require paid living assistance eventually. Approximately 35 percent will ultimately reside in nursing homes.
Medicaid Planning
There is a solution that you can implement when you work with an elder law attorney from our firm. Medicaid is a federal/state health insurance program which covers custodial care. You cannot qualify for Medicaid if you own more than $2,000 worth of countable assets. The principal will not be yours legally; it will belong to the trust. The principal will not be counted if you apply to Medicaid. However, you can receive regular distributions from the trust’s earnings. Ultimately, the beneficiaries that you named will inherit the assets that you conveyed to the trust.
Schedule a Consultation!
We can help you implement a nursing home asset protection strategy, and you can set the wheels in motion by calling our Oklahoma City elder law office at 405-843-6100. You can reach our Tulsa office at 918-615-2700. You can also use our contact form. Read More!
