Wednesday, March 25, 2015

Medicaid & Long Term Care: An Update

FoIB Holly R tips us to this from the folks at NPR:

"The Morgans live in Stockton, California. They are in their early 60s and are retired, aside from Rod’s occasional construction jobs ... In 1993, Congress passed a law requiring states to recover the costs of long-term care services spent on Medicaid recipients over the age of 55 after they die, the exact burden the couple was hoping to avoid."

No kidding.

In fact, we've noted this issue many times (most recently a few months ago). Unlike the ObamaTax clawback problem, this one's entirely reasonable: if your fellow taxpayers are footing your long term care bills, then we have a right to be reimbursed from your remaining assets. Fair's fair.

Of course, some folks don't see it that way:

"Pat McGinnis, the executive director of California Advocates for Nursing Home Reform, says estate recovery hurts the people who need inheritance the most."

No doubt, but that's where planning and risk management come into play: Partnership-compliant Long Term Care plans help defray the cost of long term care and preserve part (maybe most) of your estate.

Something to think about.
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