Is Medicaid Free?

Most cultures around the world have an idea of special treatment for people who have reached a certain age. In some places, this means an understanding that individuals will move in with and be taken care of by close family members. In others, special housing and programs are available. One of the benefits America offers to its older citizens is Medicaid. Although many people are unaware of the specifics of the program, most understand that it is a special medical plan that offers care to older Americans. Many people have heard that it is “free health care for older people.” While this is essentially correct, it only scratches the surface.

Although Medicaid is usually either low-cost or even free, individuals must meet certain specific requirements in order to qualify. In theory, these requirements are meant to ensure wealthy individuals who can afford their own healthcare don’t take advantage of the system. The truth is far more complicated. Most people who can afford healthcare do not need or want to apply for Medicaid. However, because of specific requirements, many individuals who need care the most find themselves unable to qualify. They may have too many assets to qualify, but not enough money to afford their care. This can pose a challenge to older individuals who need healthcare but may not be able to work to afford it. This is where Medicaid Planning comes in. 

Medicaid planning is a strategy to ensure that anyone who needs it can qualify for it in Tennessee. A Medicaid planning attorney, such as J. Anthony Bradley at Bradley Law Firm, PLLC, can help determine your eligibility for Medicaid and the best planning strategy to prepare for your application.

What is Medicaid Planning?

Medicaid planning is a financial strategy that uses different legal opportunities available to Tennessee residents to qualify for TennCare, the state Medicaid program. To be eligible for Medicaid, you must meet specific financial requirements. When reviewing your finances, the State of Tennessee will go back five years. You must meet the financial requirements during this entire five-year “look back” period. Failure to meet the appropriate financial requirements can disqualify you. Some requirements include, but are not necessarily limited to:

• Less than $2,901 Income a Month
• Fewer than $2000 in Assets for an Individual
• Fewer than $3000 in Assets for a Married Couple

Many people “spend down” their finances and life’s savings to qualify for Medicaid so they can have their health needs met in old age. Others find themselves in situations in which they may be eligible, but their spouse is not. This can mean placing a financial burden on the unqualified spouse. There are methods to avoid this. This is where Medicaid planning and an experienced Medicaid attorney like J. Anthony Bradley come in.

What are some Medicaid Planning Strategies?

A popular method of Medicaid planning is establishing an Irrevocable Medicaid Asset Protection Trust, or an IMAPT. A trust is a legal entity that allows you to transfer ownership of certain assets to the ownership of a reliable individual for safekeeping.

When you establish a trust, you transfer ownership of money and other assets into the trust. This means you are no longer the legal owner of these assets. At the same time you establish your trust, you appoint a trustee to manage it. The trustee will become the administrator of your assets, following your instructions. Because your assets have been transferred into the trust, they will not be counted as part of your assets for Medicaid purposes. An irrevocable trust is one in which you cannot make changes once the trust has been established. Making a trust irrevocable comes with certain advantages.

Another method is strategic gifting. Suppose you intend to leave loved ones money, vehicles, or other valuables in your will. These assets would be counted against you for Medicaid purposes. Because you were already intending to bequeath these items anyway, giving them away while you’re alive can be beneficial in multiple ways, including helping to qualify for Medicaid. It’s important to note that simply giving away valuables is not a sound legal strategy. This is because high-value gifts may come with tax restrictions or requirements. An experienced Medicaid planning attorney can help you strategically gift assets to both benefit your loved ones and help you qualify for care.

These are only two of the more popular options for Medicaid planning. There is no one “right way” to plan for Medicaid. J. Anthony Bradley can review your specific financial situation and help develop a plan based on the options available to you.

What Should I Do to Plan for Medicaid in Tennessee?

TennCare is a beneficial program that allows countless Tennessee residents to receive necessary medical care. However, applying for benefits can be challenging. This is why it’s vital to have an experienced Medicaid planning attorney on your side. If you or a loved one needs assistance in Medicaid planning in Germantown or the surrounding Tennessee area, don’t hesitate to contact J. Anthony Bradley at Bradley Law Firm, PLLC at 901-441-8215 to schedule a consultation.