Medicaid - Part 1 - What Is It?

This is going to be a series on Medicaid, including what it is, what it is for, and how to qualify.  This is a general overview and not intended to give you instructions on how to act.  It is based on the rules in Kansas. 

Medicaid is a program that was created in 1965 under the Johnson administration.  Its original intent was to provide health care/long-term care for people 65 and above who could not afford it.  It is a program that is based on having limited resources.  It can cover a stay in a long-term care facility, as well as providing health services.

It is not Medicare.  Medicare is a completely different program.  Medicare is a program that you have contributed to through the years based on your income.  Medicare does provide health services, but not long-term care custodial services.  It is frequently confused with people that come into my office. Several times people only discover that distinction when they come into my office during a crisis. 

Sometimes in our office we try to guide families through the Medicare maze in order to obtain as much benefit as possible for Medicare.  It many times will cover certain services that will keep a person out of a nursing home much longer. In fact, we observe over and over Medicare services are underutilized or are prematurely, in not wrongly, terminated.  

At the same time, we must be careful about not having someone do something that is going to disqualify them from Medicaid at some future date.

We are going to get into this more, but let’s talk about some general rules.  Generally, you can qualify for Medicaid when your assets get down to a certain limit.  That limit is typically $2,000 in countable resources (think about cash), a vehicle, $1,500 of cash value in life insurance, your home, a funeral plan, and your personal property. 

In the next article we are going to talk more about the limits of property that you can keep and exceptions to the rules.

Medicaid has its place. It can be wonderful relief for a family. But the rules are tricky. The rules are harsh. I rarely recommend going in alone.

If you would like a copy of my booklet “The Consumer's Guide to Medicaid Planning”, or if you need to schedule a consultation, give my office a call at 785-625-8040, go to our website (www.clinkscaleslaw.com) or email us at info@clinkscaleslaw.com.