4. Need for Services Will Double and the US is Not Prepared to Fund these Costs
As baby boomers retire, record numbers of retirees are expected to require long-term care services and also qualify for Medicaid.
The Bipartisan Policy Center says that the number of Americans needing long-term support is expected to be more than double by 2050. In 2010, there were 12 million needing support. By 2050, that number will be 27 million.
This increased demand for services will completely strain the system. The Bipartisan Policy Center says, “States will not be able to sustain spending for long-term services and supports as baby boomers begin to need these services and supports.”
5. It is Legal to Manipulate Your Finances to Qualify for Medicaid
Qualification for Medicaid varies from state to state.
However, the basics of qualification are fairly universal. You generally qualify for Medicaid when you have run through your assets and have income that is somewhere around less than $2,349 a month. It is also important to note that neither the value of your home nor your home equity count for qualification.
To accelerate Medicaid qualification, some retirees work with legal and financial specialists to gift money to family members, purchase annuities, put money into different kinds of trusts, and do various other tricks to shield assets from being part of the Medicaid calculations.
Sometimes these strategies need to be deployed years and years ahead of applying for the Medicaid program.
6. Medicaid Planning is an Industry
There are a cadre of lawyers, consultants, and advisors who help retirees manipulate their finances so that they can qualify for Medicaid and avoid spending their own money on assisted living or other long-term care options.