How many times have you made a quick decision that produced poor results? How did you feel after you made it? Research shows that people who feel rushed tend to regret their decision, even when it turns out well. You can even regret mundane decisions like a lunch order.
Helping a loved one apply for Medicaid is a process that is often rushed. It may involve moving from a hospital room into a nursing home. Not only do you have to decide on the right facility, you have to make sure your loved one is eligible for Medicaid benefits. It’s a lot of information to absorb and act on in a short amount of time.
Keep reading to learn more about Medicaid and how preplanning your funeral is a great way to spend down financial assets to become eligible.
What Is Medicaid?
Medicaid is a health care coverage plan that assists low-income and medically vulnerable people. It covers medical expenses including costs associated with assisted living and nursing homes.
There are more than 2.9 million Ohioans on Medicaid, and Ohio recently accepted federal funding to expand Medicaid coverage for an additional 454,000 residents.
Income and assets determine eligibility. However, Medicaid allows for a “spend down” of assets to become eligible for coverage. In doing so, Ohioans can use assets above the limit toward medical bills or other allowable expenses. This is often referred to as a Medicaid spend down.
One allowable spend down expense in Ohio is preplanning your funeral through an irrevocable burial contract.
Because a prepaid funeral plan is allowable under Medicaid rules, you can use your savings to prepay for your funeral in order to rely on Medicaid for nursing home care.
Many people learn about a Medicaid spend down when they need to transfer their loved one to a nursing home. Often, they feel hurried to reduce income and assets to acceptable levels. In that rush, they may not make the best decisions.
One solution is to plan ahead. Even if you (or a loved one) don’t need Medicaid right now, family history or early stages of a disease may indicate that you’ll need it in the future. Take the time to understand the eligibility requirements. This allows you to research acceptable ways to spend down the money, and to make the best, most informed decisions.
If you decide to preplan, seek out the right funeral home and make the arrangements you want. A preplanning advisor can guide you through the process, including easy payment installment options.
Download Our Free Funeral Arrangements Guide
Medicaid eligibility isn’t the only benefit of preplanning. Our new guide also offers valuable insight into:
• Why more people are preplanning their funerals.
• Why a preplanned funeral policy can help make you eligible for Ohio Medicaid.
• How funeral policies differ from life insurance coverage.
Download our free Seniors Guide to Funeral Arrangements: How Preplanning Can Save Time, Money and Worry. Click on the image below.
Image Credit: Myfuture.com via Flickr