Nursing Home Cost
By |
NURSING HOME COST: You could lose your life's saving in a stay at the nursing home.
HOW MUCH DOES IT COST TO STAY IN A NURSING HOME?
One year in a nursing home can cost between $26,000-$37,000. This is a cost per day of $71.00 - $101.00. The average stay is approximately two and one half years. Due to inflation, the rates are increasing an average of about 2%-5% per year.
WHAT ARE WAYS TO PAY FOR A NURSING HOME STAY?
There are four main ways:
- Cash out of your pocket
- Medicaid
- Private Long Term Care Insurance
- Medicare
HOW DO YOU GET MEDICAID TO PAY FOR A NURSING HOME STAY?
Medicaid is a government program for poor people. The rules are constantly changing. So much so that you should contact your county Department of Human Services employee in charge of Medicaid or contact a estate planning attorney for the latest updates.
However, some basic rules as of this Edition are:
- The asset level allowed for a single person is $2,000. The asset level allowed for a married couple is $3,000.
- When you apply for Medicaid, they will "look back" 36 months to determine if you have been getting rid of property in order to receive Medicaid.
- If you have over the allowed assets level then you must "spend down" to the required level before you can receive Medicaid
- There are some provisions that allow an at-home spouse to keep some assets above and beyond the $3,000.
- Generally, the house is exempt from the spend down requirement if you are married. If you are single, you must be able to show that you may return to your home at a future date in order for the house to be exempt.
- Your car, up to a value of $4,500, is exempt.
As indicated above, you should not rely on these general statements to base any decisions on. The rules change so quickly and at this time even the future of Medicaid is in serious doubt.
© 2000 Estate Planners of Arkansas, P.A.