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Guide to Medicaid planning

Medicaid was established in 1965 as a healthcare program that assists low-income individuals to receive medical care. Many senior citizens depend on Medicaid to cover the cost of long-term nursing home care. If you’re a Michigan resident, here are some important things to know about Medicaid planning.

More on medical payments

Most people will have to pay for medical expenses out of their own pockets until they are eligible for Medicaid. Medicare is an entitlement program, but Medicaid began as a type of welfare. This means that an individual must be under a certain income bracket to be eligible for the program. This indicates that Medicaid planning involves looking at one’s household budget to determine eligibility.

Medicare vs Medicaid in nursing home care

Medicare will cover the cost of nursing home care up to a point. If you have to receive care at a skilled nursing facility after staying at the hospital for a few days, Medicare will pay for the first 20 days of care. Medicare will cover most of the cost for the next 100 days of your care, but as of 2021, you’ll have to pay $185.50 each day unless you have an additional health insurance policy. After day 101, you’ll have to pay all medical costs out of pocket.

These regulations pertain to conventional Medicare. If you’re on Medicare Advantage, your benefits may be different.

Medicaid qualifications

Medicaid planning is similar in all states since this program is available for low-income families and individuals, disabled individuals, pregnant women, and senior citizens. Because of the Affordable Care Act, Medicaid is also available to adults younger than 65 who do not have a disability or minor children.

The Federal Poverty Level is used to determine income qualifications for people who apply for Medicaid. Each state has separate guidelines and requirements for eligibility.