Medicare Myths

The largest source of government funding for nursing home care is Medicaid. However, despite what you and many others think, Medicare, the government health care program for the elderly encompasses very few nursing home costs. Many shocking myths about its process may spout making us lose interest in availing of this government service. Indeed, what would you and your family feel if you're told by the nursing home social worker or some other non-lawyer that you won't qualify for Medicaid because you have too much money? And there are many other myths on Medicaid processing to baffle you beyond comparison.

Don't believe or agree on any of the following Medicare myths on the Medicaid processing that you are likely to hear anywhere and from just anybody:

1. In order to get Medicaid, you have to give away everything you own
2. You might not qualify for Medicaid if you give away assets to family or friends
3. To get Medicaid, you have to wait three years after giving away anything
4. Once your spouse gets Medicaid, you can keep all your marital property and inherited property
5. You will be eligible for Medicaid if you put your property in your spouse's name
6. Nothing changed with Medicaid rules. Medicaid rules that applied to your neighbor when he/she went to a nursing home may also apply to you.
7. You must use up assets before you can get Medicaid, once you enter as a private pay resident in a nursing home. You can only "spend down" your assets on medical or nursing home bills.
8. If you ever need Medicaid, your power-of-attorney automatically has the authority to take property out of your name
9. Under Medicaid rules, you can only give away $10,000 per year

Regarding the first myth given, getting Medicaid doesn't mean that you to be completely destitute. You don't have to sell your home if your spouse or dependent children live in your home. You can also keep personal items, car and life insurance. For the second myth, actually some transfer of assets disqualifies you from getting Medicaid but certain transfers won't. It would depend on the type of assets and who received the assets.

The third myth is not exactly true... but you do have to wait for a certain period for the Medicaid agency to examine your financial records, three years back. For the fourth and fifth myths, Medicaid rules generally consider all the assets in either spouse's name when one spouse enters a nursing home. But, for the spouse left at home, there's a certain property consideration.

The sixth myth is not to be believed at all since there were changes applied in this area of the law. For the seventh myth, see the explanation given for the first item. For the eighth and ninth items, consult with an experienced attorney to clarify these myths. Remember to always do so in any doubtful information on the Medicare program you hear.