Medicaid

What is it? Medicaid is a jointly-funded state and federal program that provides health care and long-term care for certain categories of people with very low or no income and resources.

Who is eligible? Medicaid is available to you and your family only if you meet the very strict federal and state income and resource requirements. How much income you may have and what resources you may keep and still qualify for Medicaid varies from state to state. (“Income” includes wages and pension payments, and “resources” can include items such as insurance policies, savings, cars, and valuables that the applicant may own.)

Medicaid also pays for long-term nursing home care for very low income elderly and disabled Medicare beneficiaries. Generally, if you apply for Medicaid to cover long-term nursing home costs, you will have to prove that your financial status meets the requirements for very low income and resources set by your state.

Note: It may be that you are ineligible for Medicaid at first, but several states allow people to enter a facility and then spend down their income and assets on nursing home bills to become eligible. However, there are many rules and regulations for “spending down.” You might want to consult an attorney or financial planner. In any case, be sure you understand the rules in your state.
Be assured, if you are married and only one of you needs nursing home care, the one not in the nursing home will not be required to become destitute in order to pay for the care of the other. In other words, you would not be required to “spend down” by selling your home to pay for your husband’s care. On the other hand, Medicaid can require some "payback" by billing his estate after he has died.
What does Medicaid cost? Depending on your state's rules, you may be asked to pay a small co-payment for some medical services. Medicaid makes payments directly to your health care provider—it does not pay the money to you. If you think you might qualify or for more information, go to: www.cms.hhs.gov/Medicaid.