Alzheimer's and Dementia, Long Term Care, Medicaid
“Medicaid Eligibility”
By Elder Law attorney Rick Law. Founder and Managing partner at the Estate Planning Center at Law Elder Law. Senior care and planning advocates in Aurora, IL, just off the Farnsworth exit of the I-88 tollway. Medicaid eligibility is based on the applicant’s medical condition and assets and income. For example, to apply for Medicaid assistance to cover residential long-term-care costs, an individual must either live in a nursing home or have a medical need (such as Alzheimer’s) that requires nursing home care. A medical assessment is necessary to establish medical eligibility in order to identify the long-term health-care needs. It is also necessary to be a U.S. citizen or be lawfully admitted for permanent residence in the United States. Individuals are required to live in the state where they apply for Medicaid and must intend to make that state their home. Medicaid strictly limits the assets people may own while accepting benefits. While each state has its own limits and its own exempt assets, the following are generally exempt assets that do not count against the beneficiary:
- the principal place of residence in certain situations
- household and personal belongings
- one car
- burial plot/prepaid funeral plan
- cash value of permanent life insurance policies up to $1,500
- a small amount of cash (this varies from state to state, but typically a single Medicaid applicant may keep $2,000 while married couples who both require Medicaid may keep about $3,000)