Planning ahead for the healthcare you need can be daunting. The costs can quickly drain your assets, and aid may not be available until you’ve got nothing left. Fortunately, there may be a way to get assistance before your well runs dry.
A private room in an assisted care facility in New York costs almost $150,000 per year. That’s over $400 every day to get the care you need. Medicaid can help you get that number down, but meeting their financial requirements may take purchasing an annuity.
Clearing the bar
You may not want to give all your money away to hit requirements, and review periods for Medicaid may not allow it anyway. Handing off money through gifts, trusts or purchases may keep you from getting aid for up to 60 months. But there are ways you can meet strict financial limits without exposing yourself to the years-long look-back period.
Purchasing an annuity comes with a few rules, but it can be a reliable way to keep the money coming in. You’ll buy a plan for a large sum that will pay you back over time. This could help you manage your assets and monthly income in one move.
Annuities generally have to start handing money back right away, and they must follow actuarial tables for how long they can spread payments out. This puts restrictions on much you’ll get paid every term. You can’t dump an enormous amount of money into the system and have it pay smaller amounts over a very long time to duck under income limits.
You may also need to list the state as first in line for repayment when you pass. This will pay back some of the money that you used for healthcare. There are situations where Medicaid will take a backseat, like when you name a spouse or minor child to name as the primary beneficiary.
Making sure you’re set to qualify for aid is essential, but it can be a complicated process. Understanding the process is the first step to ensuring you get the care you need.