Long Term CarePlanning Course

Lesson #5Complete Money Management, Inc.

Colin Meeks, Certified Financial Planner®

Medicaid Anyone??

• Medicaid is the same as Medical Assistance

• Administered by the State and uses Federal and State funds

• A program to provide basic health benefits to those who do not have sufficient resources and income to provide for themselves

Medicaid Will Take Care Of Me

• If you have assets, probably not.

• Not an entitlement program• Strict qualification process for

long term care benefits• Not like it used to be

Medicaid “Spend Down”

• You have money• You need long term care• You spend almost all of your

money• Medicaid verifies that you have

spent all of your money• You may qualify for Medicaid

Medicaid is your Plan

• If you do not plan to buy insurance or set aside a significant amount of your own money to self insure, Medicaid is your plan

• If you do not have a plan in place right now, Medicaid is your plan, so be sure to know all the facts

Deficit Reduction Act of 2005 (DRA

2005)• See “extra credit” download• Made most “Medicaid Planning”

obsolete• Gifting, trusts, annuities, “hiding

assets”,etc., are all pretty much done

• With few exceptions, this type of planning is probably not a good idea

Medicaid Spend Down

• Avoid this at all costs• Forced to sell, liquidate, cash in

assets an may incur unnecessary penalties, taxes, losses

• Stocks, bonds, mutual funds, CD’s, annuities, IRA’s, Real Estate, life insurance

Still Don’t Believe Me?

• Many of you will not• You’ll go off what your friend told

you or your uncle did 5 or 10 years ago

• This is an expensive education• Medicaid spend down rules are strict,

getting stricter, and they do a very thorough job of verification

Practical Thinking……

• Higher medical costs• Aging population• All of the other financial obligations

that the Gov’t has - Social Security, Medicare to name 2

• They cannot, no matter who is in charge, afford to have Medicaid pay for long term care for everyone.

Medicaid In Short…

• If you can pay, you will pay• When you can’t pay anymore,

Medicaid may pay• Medicaid will “Trust but Verify” (just

like Ronald Reagan did with Russia)• Is a qualification program, not an

entitlement program

Where Do You Fall?

• Small estate - own a home, less than $100,000 in other assets - Medicaid may be your best plan

• Large estate - $2 Million plus - self insure may be best

• Stuck In The Middle - not rich enough and not poor enough

Summary

• Know the facts• Extra Credit• Ask Colin a question• Take the quiz, send me your

answers• Schedule a discovery meeting

Class Dismissed

• See you next week• Taxes and LTC Insurance