Chicago, Illinois
United States

Medicaid in a Skilled Nursing Facility (Part 2 of 2)

Our last article focused on Medicare coverage in a skilled nursing facility. This post is focused on Medicaid eligibility and coverage in a nursing home. As people age, it may become unsafe for them to remain at home or live on their own. Nursing homes or other long-term care facilities can provide the level of care that such individuals need, though they often come with a hefty price tag and can be a struggle for the senior to pay. Medicaid can help the senior pay for the level of care they need.  

For background, Medicaid is a state and federal program which pays medical costs for low income adults with or without children. Medicaid also covers people aged 65 and older, blind, disabled, or pregnant and cannot pay their medical bills.

But most people do not realize that Medicaid also pays for nursing home care as well. For seniors who require long-term care and meet the financial eligibility criteria, Medicaid has a program which covers long-term care and pays for almost 100% of their nursing home costs. As an elder care attorney, I often work with clients applying for Medicaid, hoping to appeal a Medicaid decision or interested in Medicaid planning for the future.

In 2020, in Illinois to qualify for Medicaid long-term care benefits, applicants must have less than $2,000 worth of non-exempt assets. Married couples applying together have a higher limit, but if only one spouse is applying, the “community spouse”, can have their own income and retain up to $109,560.00 in non-exempt assets. The question here becomes, what assets are exempt and what assets are non-exempt?

Medicaid provides certain protections for the “community spouse” to ensure that they have the necessary support to continue living in the community while their spouse is receiving long-term care benefits.  In addition to the $109,560.00 in non-exempt assets, some of the other exempt assets which do not count against your Medicaid asset limitations include, but are not limited to*: the applicant’s home as long as the community spouse is living there, household goods such as furniture and appliances, one vehicle, life estate interests in real estate, prepaid funerals and personal items such as clothing and jewelry, among other exempt assets.

You should not wait until you have only $2,000.00 in assets to contact an elder law attorney about Medicaid planning. This planning should be done years before you or your loved one needs nursing home care. If you are facing a shorter deadline for a need for this care, it is then more urgent that you contact an elder law attorney about Medicaid planning services. At the Law Office of Kate Curler LLC, we work with clients at all stages of eligibility for benefit programs. In a future post, we will discuss some specifics of Medicaid planning and how a “spend-down” works.

This post is meant to give you basic information about Medicaid coverage and eligibility. Yet, there are many more nuances that are not included here. If you have questions about Medicaid, please contact Attorney Lauren Kaplan at lkaplan@curlerlaw.com or (312) 952-1077 for a free consultation.

*This list is not exhaustive, and you should not rely solely on this to complete your own Medicaid application.

The contents of this blog post are intended to convey general information only and not to provide legal advice or opinions.