The high cost of nursing home care leads many people to consider Medicaid as an option to preserve a legacy for their family. Medicaid is a joint state and federal health care program that provides nursing home coverage if you qualify. Medicaid has complex rules and eligibility requirements that many people have trouble understanding. As a result, many myths exist about Medicaid's benefits, its eligibility process and the Medicaid estate recovery process. These myths can result in people making decisions that end up being harmful and costly.
These common myths include:
- Nursing home care is free if you are on Medicaid
- You can avoid Medicaid estate recovery by avoiding probate
- A life estate deed is the perfect Medicaid planning tool
- Asset protection is the same as Medicaid protection
- Medicaid will take your home
Medicaid eligibility and estate recovery are very complicated. They are also very fact- and location-specific. It’s critical that any advance planning to preserve assets from these threats be based on accurate information and professional guidance.
