MEDICAID CASE STUDY:
MARRIED COUPLE WITH ONE SPOUSE GOING INTO THE NURSING HOME
MEET ARTHUR & MARY​
Arthur was recently diagnosed with dementia and is facing a nursing home that costs $8,500 per month. His wife Mary worries that paying the nursing home bill will deplete their life savings. So, she meets with a local Elder Law attorney to learn about their options to qualify Arthur for Medicaid benefits.
Arthur's Age: 81
Mary's Age: 78
CASE FACTS
ARTHUR'S MONTHLY INCOME
$2,000
ASSETS
$300,000
MARY'S
MONTHLY INCOME
$1,500
MONTHLY NURSING
HOME COST
$8,500
LEGAL STRATEGY:
TURN THE COUPLE'S "EXCESS" COUNTABLE ASSETS INTO AN INCOME STREAM FOR MARY.
1.
STEP ONE:
DETERMINE THE
SPEND-DOWN AMOUNT
Mary is allowed to retain up to one-half of the couple’s countable assets, not to exceed the maximum Community Spouse Resource Allowance (CSRA) of $137,400. Arthur is allowed to keep $2,000. So, Medicaid will tell the couple they must “spend-down” $160,600 before Medicaid will pay Arthur’s nursing home bill.
2.
STEP TWO:
IMPLEMENT THE PLAN
Instead of “spending-down” the
$160,600, an Elder Law Attorney can convert it into an income stream for Mary because Mary’s monthly income does not “count” when determining Medicaid eligibility for Arthur.
3.
STEP THREE:
APPLY FOR MEDICAID
Converting the couple’s “excess”
countable assets into an income
stream for Mary will make Arthur
immediately eligible for long-term care Medicaid.
*
RESULT:
Medicaid pays Arthur’s nursing home bill each month, and we saved $160,600 for Mary.
Countable Assets:
​
Mary's CSRA:
​
Arthur's Allowance:
​
Excess Countable Assets:
$300,000​
​
-$137,400
​
-$2,000
​
$160,600
AMOUNT SAVED:
​
$160,600
Ready to take the next step? Get your own personalized analysis absolutely free. Contact us today!
* All situations are different. These strategies require a very specific type of planning. For protection of your family, please work with an experienced Elder Law attorney.