Retired adults often have more medical expenses than those in their prime earning years. Health challenges later in life are relatively common. Most people have insurance coverage through their employment, which means that retirement ends their access to private coverage.
Thankfully, working adults and their stay-at-home spouses are usually eligible for Medicare benefits. Medicare provides basic health coverage to retired adults and their spouses. Most older adults take their ability to access medical care for granted if they are likely eligible for Medicare coverage.
Unfortunately, they may discover that there are problematic limitations for Medicare benefits that could negatively affect their financial stability and access to care during retirement. While many people expect Medicare to cover all of their necessary medical costs, restrictions on coverage leave many people with financial responsibility for major expenses later in life.
Older adults may require Medicaid eventually
Medicare coverage has numerous noteworthy limitations. Long-term care costs, such as an extended stay in a rehabilitation facility, a bed in a nursing home or in-home support, are typically not eligible for Medicare coverage.
While there are some short-term benefits available, those in need of long-term support cannot rely on Medicare. Instead, they likely need to apply for Medicaid, which means that their income and assets are subject to scrutiny.
Applicants must show that their income and countable assets are below the current state threshold for Medicaid eligibility when applying for long-term care benefits. Current financial circumstances are not the only consideration. State employees usually review five years of transactions when people apply for Medicaid.
Large transfers or gifts made in the 60 months prior to a Medicaid application can trigger a penalty. The applicant may only become eligible for Medicaid long-term care coverage after they pay for their own care for a certain number of months first. While most older adults may hope to maintain their health and minimize their expenses, planning well in advance for Medicaid eligibility is usually beneficial.
Older adults on the cusp of retirement or facing the early stages of medical decline may want to work with a lawyer to ensure their eligibility for Medicaid when they need support later. Otherwise, they may struggle to obtain the medical care they require and may not be able to pass their assets to their children or other beneficiaries after their death.
Thorough Medicaid planning is beneficial for those concerned about their support needs and finances. Planning performed long before people require benefits can provide peace of mind during retirement and make accessing benefits easier if an individual’s health changes during their golden years.