Long-term care services can be incredibly costly, and more importantly, these costs are usually not included in most health insurance plans. That is why it is critical that individuals plan ahead and consider Medicaid planning as an option when it comes to long-term care planning. In the following article, we will discuss Medicaid planning in more detail and help you understand how it can safeguard your assets from long-term care expenses.

What Is Medicaid Planning?

Medicaid planning refers to the arrangement of your financial affairs to qualify for Medicaid benefits while preserving your resources to supplement Medicaid benefits. This type of planning can also help you leave an inheritance for your children or other estate beneficiaries. Yet, while Medicaid planning can encompass a wide variety of services, generally, it requires transferring assets to others or putting them in a trust in order to qualify for Medicaid. If individuals successfully implement these plans, they can get assistance with their long-term care costs. 

However, it should be noted that Medicaid planning is not about hiding assets or lying on Medicaid applications. In fact, these types of actions can result in significant penalties for those involved. Instead, ethical Medicaid planning involves following the law to help you and your loved ones in the long run.

What Are the Rules in Louisiana Regarding Medicaid Planning

Louisiana Medicaid has implemented strict guidelines to prevent individuals from transferring assets to gain eligibility for Medicaid assistance. The primary objective of these rules is to ensure that Medicaid resources are utilized only by those who genuinely need them and not by those who have transferred their assets to their family members or loved ones. These regulations help to maintain the integrity of the Medicaid system and ensure that it continues to provide vital support to those who need it most. As a result, if you transfer assets for less than their fair market value in Louisiana or make transfers within a certain period before applying for Medicaid, you may face a period of ineligibility (the penalty period) for Medicaid. During this period, you cannot obtain Medicaid benefits, even if you meet all other eligibility requirements. 

However, some exceptions to the Medicaid transfer rules allow certain transfers to be made without being subject to the transfer penalty.

To better understand these rules and exceptions, consider reviewing your situation and Medicaid plans with an experienced Louisiana Medicaid attorney. These legal professionals can walk you through the transfer rules in Louisiana and develop a Medicaid planning strategy that works for your needs while ensuring it complies with the state’s regulations.  

Contact Losavio & DeJean, LLC, and Learn More About Protecting Your Assets

Qualifying for Louisiana Medicaid can be challenging. However, you do not have to go through it alone. By planning ahead and working with experienced legal counsel, you can increase your chances of securing the care you may need in the future while protecting your assets in the process.

For more information about Medicaid planning, contact Losavio & DeJean, LLC today and speak with a member of our legal team.