Questions about Medicaid often arise during stressful moments, such as a sudden illness or a decline in health. Unfortunately, Medicaid eligibility does not work well in emergencies. Without advance planning, families may face costly delays or penalties at the very time they need help the most. Early planning can ease that burden and provide a clearer path forward.
Why Medicaid Planning Matters
Medicaid is the primary way most people pay for nursing home care in Louisiana. Long-term care is expensive, often costing several thousand dollars per month. Medicare does not cover extended nursing home stays, and private insurance is limited for many people.
Medicaid is a needs-based program. To qualify, you must meet strict income and asset limits. If you wait until a health crisis occurs, your options may be limited, and rushed decisions can create long-term consequences.
The Five-Year Look-Back Rule
In Louisiana, Medicaid applies a five-year look-back period. This means that when you apply for Medicaid, the state reviews your financial transactions for the previous five years. If you transferred assets or property at less than their fair market value during that period, Medicaid might impose a penalty period.
During a penalty period, Medicaid will not pay for nursing home care, even if you otherwise qualify. This can leave families scrambling to pay out of pocket.
Because of this rule, the ideal time to plan for Medicaid is at least five years before you anticipate needing long-term care. Early planning provides the most flexibility and protection.
Is It Ever Too Late to Plan?
Even if you are within the five-year window, Medicaid planning may still be possible. There are legal strategies that can help preserve some assets or properly structure income. However, late planning options are often more limited and less effective than early planning.
This is why it is important not to assume you have waited too long. A knowledgeable elder law lawyer can review your situation and explain what options may still be available.
Common Medicaid Planning Mistakes
Many people believe they can simply give their home or savings to their children to qualify for Medicaid. This is one of the most common and costly mistakes. Improper transfers can trigger penalties and disqualify you from benefits when you need them most.
Another mistake is relying on advice from friends or outdated online sources. Medicaid rules change, and Louisiana has its own specific regulations that must be followed.
When Is the Right Time To Start Medicaid Planning?
For most individuals, the optimal time to start Medicaid planning is in their early to mid-60s, or earlier if they have health concerns. Planning does not mean you expect to need a nursing home soon. It simply means you are preparing for the possibility while protecting your independence and financial security.
Even younger families can benefit from learning how Medicaid planning fits into an overall estate plan.
How Losavio & DeJean, LLC Can Help
Medicaid planning can feel overwhelming, especially when the rules are unfamiliar or the need for care is approaching. At Losavio & DeJean, LLC, we help Louisiana families navigate Medicaid eligibility, protect assets, and plan for long-term care with clarity and confidence.
Whether you are planning years in advance or facing an immediate need, speaking with a knowledgeable attorney can make a meaningful difference. The sooner you begin planning, the more options you may have to protect your future and support your loved ones.
Contact Our Team Today
If you have questions about Medicaid planning in Louisiana, Losavio & DeJean, LLC is here to help. Our team is ready to guide you through the process and help you get the peace of mind you need. Contact us today to get started.