Medicaid and The Married Couple
Sandy Messer, CSA
When faced with the high cost of care, married couples in particular worry about depleting their nest egg. The well spouse may be concerned that caring for their loved one will leave them little funds to care for themselves in the future. Children may question the needs of both parents and fret over finding a way to provide those needs without dipping into their child’s college fund.
Medicaid coverage is one area that usually leaves people fearful they will have to spend down leaving nothing left. These fears can be alleviated by proper planning. What does Medicaid pay for? Each individual state governs their own medicaid funds, but they all offer some protection of assets for the well spouse. In most cases, income generated by the well spouse is not a countable asset, and some savings can be set aside for the well spouse. Additional funds may be invested in a Medicaid friendly annuity generating an income stream for the well spouse. Advanced senior planning in financial matters is very important for a successful transition unto Medicaid but in the end the family resources can be protected.