Medicaid is a State and Federal Government program that pays for certain health services and nursing home care for older people with low incomes and limited assets. In most states, Medicaid also pays for some long-term care services at home and in the community. Who is eligible and what services are covered vary from state to state. Most often, eligibility is based on your income and personal resources.

"Medicaid Planning" was previously used by some financial planners to help their clients transfer assets to other family members, sheltered investments, etc... in order to give the appearance that the client was financially insolvent. The Balanced Budget Act of 1997 made it a misdemeanor for planners to assist clients in participating in so-called "Medicaid Planning". The Act also contains a provision that allows a 36 to 60 month look-back period for assets transferred for less than fair market value.

Practice Question:
Which of the following statements are correct concerning Medicare and long-term care?

I. Medicare does not pay for "Skilled Care"
II. Medicare covers short-term nursing home care only
III. Medicare pays for up to 120 days
IV. Nursing home admission requires 3 days of prior hospitalization

A. I and II
B. II and III
C. II and IV
D. IV only

Answer: C
Medicare covers only short-term nursing home care in a Medicare-certified nursing facility. The only care Medicare will pay for is "skilled" care, such as ongoing nursing visits. Medicare also requires recipients to have been hospitalized for at least 3 days prior to admission in a nursing home in order to be covered for their skilled care.



Benefit Periods

Related Articles
  1. Personal Finance

    Medicaid and Nursing Homes: A Quick Guide to the Rules

    Medicaid can cover the costs of a long-term healthcare facility, if you qualify. But that's a big if.
  2. Retirement

    How Medicaid Works After Retirement

    Reasons why, after you retire, you need to know how Medicaid works – and especially how it relates to Medicare.
  3. Retirement

    Medicaid Vs. Medicare

    Medicare and Medicaid only sound similar. Medicaid doesn't require being 65 or disabled to get benefits. Some low-income seniors can qualify for both.
  4. Personal Finance

    Medicaid Vs. Long-Term Care Insurance

    These are not equal. Here's why you need to think twice before relying on the government-sponsored program.
  5. Trading

    Long-Term Care: More Than Just A Nursing Home

    Learn what you can do now to keep your options open in the future.
  6. Personal Finance

    Medicare Vs. Medicaid

    Medicare and Medicaid are often confused with one another, because they are both public health-care programs. This confusion likely arises from the similarities between the two programs. After ...
  7. Managing Wealth

    Things Nursing Homes Are Not Allowed to Do

    What rights do a home's residents have? The same ones they they had before they entered the facility.
  8. Retirement

    Failing Health Could Drain Your Retirement Savings

    You may not be able to prevent illness, but it doesn't have to infect your savings.
  9. Retirement

    Secrets to Finding the Right Nursing Home

    The wrong choice could mean inadequate – or even deadly – care.
  10. Personal Finance

    Protect Your Home From Medicaid Liens

    Plan ahead for long-term care needs to protect your home and your estate.
Trading Center