Medicaid Myths:

Myth: Medicaid is only available for the poor.

Fact: Many middle-class people are enrolled in Medicaid for Aged and Disabled and consider it a valuable resource to spare their families from the financial burden of having to provide for their long-term care needs.

Myth: You have to spend down all your assets to qualify for Medicaid.

Fact: Medicaid is a state and federal partnership, and while you must follow their complex rules, with proper planning Indiana allows for individuals to qualify for in-home care, assisted living care or nursing home skilled care while preserving their hard-earned assets.  In spousal cases, it is possible to establish immediate eligibility while protecting assets for the healthy spouse.  In single cases, you can protect at least 50% of assets depending on income, assets, and the cost of care needs.

Myth: Medicaid can take my house from me.

Fact: You can keep your home as long as the Medicaid recipient, a spouse, or a disabled child live in it. There are other means of protecting real estate, be sure you consult with a professional who specializes in Medicaid prior to transferring or selling any real estate owned by a Medicaid applicant.

Myth: Monthly income is too high to qualify for Medicaid.

Fact: While it is true that Medicaid Aged and Disabled has a special income limit of $2,829 (2024) gross income per month, utilizing a Qualified Income Trust (Miller Trust) allows for qualification, no matter how high the income or the number of income sources. Only the applicants income is considered, the community spouse’s income is exempt.

Myth: Once I get Medicaid approved, I am set for life.

Fact: Medicaid recipients are required to complete an annual redetermination to ensure they are still in compliance with Medicaid rules. Failure to report changes can result in loss of coverage. We assist our clients, and several referral partners, with the Medicaid redetermination process for a minimal fee. 

Myth: I will have to change doctors if I am on Medicaid.

Fact: You do not have to change doctors. Your Medicare or other supplemental health insurance always remain primary and Medicaid will be the payer of last resort.

Myth: Don’t I automatically receive Medicaid at age 65?

Fact: Medicaid and Medicare are two different programs and are often confused. Medicare is a benefit you received when you turn 65 which covers basic health care and often short-term rehabilitation. Medicaid is a means-tested program that covers medical care, such as long-term home health care aides, adult day care programs, assisted living and nursing home facility care.

 Myth: My loved one needs care now. I heard there is a five year look back, is it too late to plan?

Fact:  It is never too late to save a portion, or sometimes all, of your assets in Indiana, but you must follow all of Medicaid’s complex rules. It is important to consult with a professional to discuss all your options.