Long-term care is expensive, and Medicare covers only limited stays. Medicaid pays for nursing home care for people who meet strict income and asset rules.
Key concepts
- Medicaid has income and asset limits, which vary by state.
- Certain assets, such as a primary home up to a limit and one car, may be exempt.
- A five-year look-back reviews transfers of assets for less than fair value.
- Penalty periods can delay eligibility after improper gifts.
Protections for spouses
A spouse who stays at home, called the community spouse, may keep a portion of assets and income. These rules prevent spouses from being left without resources.
Avoid mistakes
- Giving away assets without advice.
- Missing deadlines for applications.
- Not documenting transactions.
- Relying on unreliable advice or paying for scams.
Where to get help
- Talk to an elder law attorney, who can plan within the law.
- Contact your local Area Agency on Aging.
- Ask your state Medicaid agency about long-term care programs.
- Consider legal aid for seniors.
Frequently asked questions
Does Medicare pay for nursing homes?
Only for limited short-term skilled care after a hospital stay.
Can the state take my home?
Estate recovery can seek repayment from the estate in some situations.