Medicaid and Nursing Homes Don't Take Your Assets

One of the most common fears that clients have when facing the need for nursing home care is the belief that either Medicaid or the nursing home will take their home or other assets. Let me assure you, this is simply not true. The idea that a government official will come knocking on your door, demanding the keys to your house or asking you to hand over your hard-earned assets, is a myth. Medicaid doesn’t “take” anything, and neither does the nursing home. Here’s what actually happens.

First, it’s important to understand just how expensive nursing home care can be. Depending on the facility, the level of care, and other factors, nursing home costs can easily reach $12,000 or more per month. Unfortunately, most health insurance plans, including Medicare, won’t cover these costs for an extended period. That’s where Medicaid, a government program designed to help with long-term care, comes in.

Medicaid is a means-tested program, meaning you must meet certain financial eligibility requirements to qualify. While Medicaid doesn’t “take” your assets, you are required to spend down your assets to meet these qualifying limits. However, this doesn’t mean you’ll lose everything. In fact, there are rules in place that protect many of your assets, including your home, during your lifetime.

In Pennsylvania, for example, Medicaid will not take your home while you are alive, and if your spouse or a dependent lives in the home, it remains protected even while you receive nursing home care. Even after you pass, there are legal steps—such as estate planning and Medicaid asset protection strategies—that can be taken to minimize the impact on your estate. With proper planning, you can preserve much of what you’ve worked so hard to build, while still receiving the care you need.

At the end of the day, Medicaid isn’t here to take your assets, but rather to help you afford the care you need when your resources are limited. The key is to start planning early and work with an experienced professional who understands Medicaid’s complex rules and can guide you through the process.

If you have questions about how Medicaid might affect your assets or want to explore options to protect your home and savings, feel free to contact us. Together, we can create a plan that works for you and your family.