Understanding Asset Based Long Term CareA California family had to contend with a situation wherein two older family members who were living with them suddenly needed long term care. They were so unprepared for the situation information wise that they ended up paying more than they should for long term health care services. The thing about aging and long term care is that it can be prepared for in most cases. If adequate preparation and sufficient knowledge of the process is undertaken and gathered, one would avoid the kind of snags that the California family had specifically with asset based long term care. Asset based long term care specifically refers to not only what one has to have in total assets to qualify for Medicaid, but also refers to the kinds of assets that may be used by the government for this purpose, some of which you might actually use for other equally important purposes. The way it works is this: if you are substantially wealthy, you can afford not to be covered. If not and if you apply for Medicaid, the program requires that for you to qualify, you not only should have actual limited income and resources, but that if you have additional assets, you need to spend down the value of these assets to at least $2,000.Other requirements for asset based long term care includes giving up all but one of your cars as well as reporting all other forms of assets such as stocks and bonds. The program basically pares down your monthly expenses to just $30. What families do when availing of asset based long term care is to transfer all available assets to another person just so they could qualify for Medicaid. The law of course has anticipated this and requires that such transfers be made within certain lime limits. Even then asset based long term care makes it necessary the any transfers done within a certain period of the application and of assets transferred to a trust, must be reviewed. Such reviews are necessary to see if such transfers were done in good faith. The asset's value if it was either sold or transferred should be fair in the sense that it should equal the open market value of the asset if it were sold on the open market. To offset such factors present in asset based long term care, people normally purchase long term care insurance to cover those needs that occur when they inevitably reach a point when they do need such services. Long term care policies have different options and variations based on need. Its important considerations of course include costs and coverage duration. You can choose among a selection of daily benefit amount levels which would determine what is appropriate for your condition. Such amounts can be as low as $60 to as high as $200 depending on whether you choose the coverage to be done at home or for room and board in a nursing home facility or assisted living environment. There are also varying benefit periods lasting for three years to five years. But remember that the daily benefit level you have chosen can actually be saved or lessened; in effect, the savings will mean that you can go beyond the benefit period you have chosen. |