Older adults preparing for retirement have many unique needs to consider. They may need to plan for the possibility of a medical emergency. People preparing to retire or who have already transitioned away from full-time employment may also need to address the possible need for long-term care as they continue to age.
Older adults may rely on in-home support from professionals to continue living independently in their golden years. Others may move into nursing homes. Older adults typically need to plan in advance to cover the costs of long-term care.
Why is prior planning so important?
Long-term care is costly
A room in a nursing home or regular visits from home health aides can cost thousands of dollars per month. People living on a fixed income cannot rely on Medicare to cover those costs. Medicare has numerous gaps, including limited coverage for intensive support and rehabilitative care.
Those in need of long-term care may need to plan in advance to ensure that they are eligible for Medicaid coverage. Professionals reviewing Medicaid applications look at five years of financial transactions. Applicants may be subject to a penalty that leaves them without any coverage for months.
Even if they qualify when they need benefits, their loved ones could face aggressive estate recovery efforts after they die. The personal representative of their estate may have to liquidate assets or even sell the primary residence of the deceased Medicaid beneficiary to repay the value of the benefits that they received.
Prior planning for long-term care can make it easier for people to qualify for Medicaid. Advance planning also limits the likelihood of estate recovery efforts. Addressing the potential need for long-term care is beneficial for those who want to leave something meaningful for their loved ones after they die.
