MYTH:  It is against the law to plan for Medicaid.​

TRUTH: Medicaid planning is legal when advised by an attorney, however the “consulting” or services offered by non-attorneys is not.  Texas Resource Code Sec. 12.001.

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 ​MYTH: I can’t give anything away and get Medicaid.​

TRUTH: The Medicaid rules provide that a person can be penalized for giving away property, in some cases.  However, a lot depends on how much is given away, when, and the date of the application for Medicaid.​

 

MYTH:  I have to wait five years after giving anything away, to get Medicaid.

​TRUTH: The penalty isn’t always five years, and sometimes there is no penalty at all.  As of 2011 there is a five year “look back” for some asset transfers.

 

​MYTH: Medicare will cover my nursing home bill.​

TRUTH: Medicare only covers a small amount of the nursing home care provided in this county. In general, there are 20 days of full coverage, if you go into the nursing home after at least three days in the hospital and you are getting skilled care (not intermediate level care).  Then, if you still need skilled care, you can get up to 80 days of partial coverage from Medicare.​

 

MYTH: If I enter a nursing home as a private pay resident, I must use up my assets before I can get Medicaid.​

TRUTH: You are not required to exhaust your assets to private pay for the nursing home care.  There are many opportunities to spend down on eligible items that will enhance your estate and the family members you leave behind.  Seek our advice.​

 

MYTH: I can only ‘spend-down’ my assets on medical or nursing home bills.​

TRUTH:  Some may tell you that you have to spend your savings on the private pay rate, before applying for Medicaid, but this is not true.​