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Applying for Medicaid Too Late

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This is a 10-part series on mistakes that people make surrounding Medicaid

Similar to applying for Medicaid too early, you can also apply too late.

A woman that attended one of our workshops a few years back had questions about her Long Term Care policy. After some discussion, I learned that her husband had passed away in the last six months or so and had been on medicaid through the end of his life. They had been directed to spend down their assets to $2,000 TOTAL in order to qualify him for Medicaid.

Technically, he was in fact limited to $2,000 in assets in order to qualify for Medicaid. The wife, however, who was not on Medicaid and did not need long-term care, was NOT limited to $2,000 in assets.

Here in Colorado, there are exemptions for couples where one is on Medicaid and one is NOT. The total asset amount for this particular couple exemption is $2000 for the one that is on Medicaid but a total of $148,620 for the couple.

This is a common mistake. Even among social workers and nursing homes. They simply aren’t knowledgeable of the full exemptions available to a couple where one is on Medicaid and one is not.

This couple spent down their assets to $2000. Now this woman is at my workshop, six months after losing her husband, with her house and $2000 worth of assets, wondering if she should continue paying for her expensive Long Term Care policy. Had they fully understood the exemptions available to them, she would be left with much more than $2000 in assets.

If you like this content and would like to hear more about Medicaid, powers of attorney, trusts, wills, etc, sign up for one of our workshops. There are two ways to sign up for these workshops. Sign up online, or call our office at (720) 440-2774.

Take care. Have a great day.

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  • Giving Away Assets Without Considering All of the Consequences Read More
  • Failing to Take Spousal Protections Read More
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