Elder LAW FAQs
Q: What is Medicaid?
A: Medicaid is a federally designed, state-administered welfare program that pays for medical care for qualifying low-income and needy individuals including individuals over 65, blind, and disabled.
Q: How much money can I have and still qualify for Medicaid?
A: You cannot keep more than $1,500 in cash to receive Medicaid. You may keep certain “exempt” assets, including personal property, burial plots, and irrevocable funeral plans.
Q: Do I have to sell my house to get nursing home coverage from Medicaid?
A: You can keep your home for 13 months after you enter a nursing home as long as you intend to return there. Also, your home will be protected so long as it is occupied by your spouse, your disabled child, or a sibling with an equity interest who has lived in the home for more than one year right before you went to the nursing home. If you receive Medicaid through the Passport Waiver Program, you will be able to continue to live in your house. If your house is still in your estate at your death, the state will have a right to recover whatever was spent on your care by selling your house.
Q: Will my spouse have to spend all of his money if I go into a nursing home?
A: No. Your spouse may keep exempt assets (your house, one car, personal property, burial plots, and pre-paid funerals) as well as half of the other countable assets with a minimum of $21,912 and a maximum of $109,560. Also, your spouse may get to keep part of your monthly income if his own income is less than $1,750 per month. In special circumstances, he may qualify to receive even more of your assets and income.
Q: Will I qualify for Medicaid if I just give my money to my children as a gift?
A: Gifts made within the 60 months before applying for Medicaid may be penalized. The penalty period (during which you cannot get Medicaid) is based on the number of months you could have paid for nursing home care had you kept the money. The average cost of care in Ohio now is $5,247 per month. So, for every $5,247 you give away, you must wait one month before qualifying for Medicaid. Therefore, a gift of $52,470 would disqualify you for 10 months ($52,470 divided by $5,247 = 10).
Q: Why would I want to pre-arrange and pre-pay a funeral?
A: Pre-arrangement allows you to talk directly to the funeral director about your funeral preferences. Also, it can relieve surviving family members of financial burdens and from having to make funeral decisions while grieving. Finally, if you qualify for Medicaid assistance or anticipate qualifying you may pre-pay your funeral without impacting your Medicaid eligibility.
Q: Are there disadvantages to pre-paying?
A: By pre-paying, you are tying up your funds. Additionally, if you cancel the pre-paid contract, you may not receive all of the funds back from the funeral home.
Q: Can I receive a refund if I change my mind after I’ve signed a contract to pre-pay funeral expenses?
A: Pre-paid funeral contracts may either be revocable or irrevocable. For the first seven days after the contract is signed you may revoke any pre-paid funeral contract—even an irrevocable one. During the first seven days, you are entitled to a full refund. After this initial cancellation period expires, you can cancel only a revocable contract. If the revocable pre-paid contract guarantees the price of the funeral, you are entitled to receive back from the funeral home 90 percent of the amount in the trust. If the pre-paid contract does not guarantee a price, you will get back 100 percent of all principal and interest when you cancel the contract. While you cannot obtain a refund on an irrevocable contract, you may direct that the funding be transferred to another funeral home.
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