Q. What are the chances that I will spend the last years of my life in a nursing home?

A. According to the New England Journal of Medicine, 52% of all women and 33% of all men who are now 65 will spend their last years in a nursing home.

Q. What are the options for paying for long-term care?

A. Private pay certainly could be an option for those who can afford it and may not be concerned with leaving assets to heirs. Another option is long-term care insurance which should be bought very carefully and with the advise of an objective professional with knowledge of Medi-Cal LTC. We recommend a LTC insurance company that allows you to keep control of your assets and allows you to receive your money back if the policy is never activated by nursing or assisted living care. Another option is to prepare and allocate your assets in a way that if you do ever need nursing home care, Medi-Cal qualifying can be done efficiently and with little or no consequences to the estates value.

Q. I know that the average stay in a nursing home is 1 year and that the average cost is $65,000 a year, so how can I afford this? What will Medicare pay for?

A. Medicare only pays for 20 days of nursing home care and with supplemental insurance another 80-100 days can sometimes be covered. If the average stay is 1 year, are you prepared to pay up to $65,000 for the remainder of the year? And what if the stay is longer? If this is a concern to you, we recommend that you consult a professional estate planner for long-term care. We know from experience that there are many options for seniors to pay for long-term care.

Q. If I do qualify for Medi-Cal, will I be forced to stay in a poorly run nursing home or forced to stay in the "Medi-Cal wing"?

A. NO! Laws have been passed which state that Medi-Cal patients cannot be forced to leave even if the facility pulls out of the program. Furthermore, private-pay patients who enter nursing homes that choose not to admit Medi-Cal patients must be informed that they may have to leave the facility if they spend down their assets to the point that they rely on Medi-Cal.

Q. Will the State "recover" our home or will we lose it if we are on Medi-Cal LTC?

A. This is a common misconception. The home and other assets can be protected from recovery with simple planning and instruction. The home is considered exempt when qualifying for benefits regardless of value. Transfers of property and other transactions would be done carefully and with the advise of a qualified Medi-Cal specialist.

Q. Can I transfer money or property in order for my loved one to qualify for benefits?

A. Transfers of property should be done VERY carefully and only under the advise of a Medi-Cal planner. California is under a "30 month look back period" which means in order to qualify for benefits; there must be no illegal transfers of assets or money with in that 30 month period. Sometimes gifting and transferring of assets can be an effective tool if done properly, however, if upon application for benefits a transferred is detected, there can be strong action taken by the State.

Q. How does someone qualify for Medi-Cal?

A. There are many "exemptions" allowed for the community spouse (healthy spouse). These exemptions are designed to protect the healthy spouse from being financially devastated and impoverished. Singled, widowed, and divorced people can also benefit from the Medi-Cal nursing home program. The program is designed to help "middle-class seniors" from becoming impoverished due to a nursing home stay. If you or someone you love is worried about losing hard earned assets to a nursing home, meet with us or call us. We can sit down with you, free of charge, and explain your rights and all your options to protect your estate.