Download - Long Term Care Planning Course - Part 5 of 8
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Long Term CarePlanning Course
Lesson #5Complete Money Management, Inc.
Colin Meeks, Certified Financial Planner®
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Medicaid Anyone??
• Medicaid is the same as Medical Assistance
• Administered by the State and uses Federal and State funds
• A program to provide basic health benefits to those who do not have sufficient resources and income to provide for themselves
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Medicaid Will Take Care Of Me
• If you have assets, probably not.
• Not an entitlement program• Strict qualification process for
long term care benefits• Not like it used to be
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Medicaid “Spend Down”
• You have money• You need long term care• You spend almost all of your
money• Medicaid verifies that you have
spent all of your money• You may qualify for Medicaid
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Medicaid is your Plan
• If you do not plan to buy insurance or set aside a significant amount of your own money to self insure, Medicaid is your plan
• If you do not have a plan in place right now, Medicaid is your plan, so be sure to know all the facts
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Deficit Reduction Act of 2005 (DRA
2005)• See “extra credit” download• Made most “Medicaid Planning”
obsolete• Gifting, trusts, annuities, “hiding
assets”,etc., are all pretty much done
• With few exceptions, this type of planning is probably not a good idea
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Medicaid Spend Down
• Avoid this at all costs• Forced to sell, liquidate, cash in
assets an may incur unnecessary penalties, taxes, losses
• Stocks, bonds, mutual funds, CD’s, annuities, IRA’s, Real Estate, life insurance
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Still Don’t Believe Me?
• Many of you will not• You’ll go off what your friend told
you or your uncle did 5 or 10 years ago
• This is an expensive education• Medicaid spend down rules are strict,
getting stricter, and they do a very thorough job of verification
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Practical Thinking……
• Higher medical costs• Aging population• All of the other financial obligations
that the Gov’t has - Social Security, Medicare to name 2
• They cannot, no matter who is in charge, afford to have Medicaid pay for long term care for everyone.
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Medicaid In Short…
• If you can pay, you will pay• When you can’t pay anymore,
Medicaid may pay• Medicaid will “Trust but Verify” (just
like Ronald Reagan did with Russia)• Is a qualification program, not an
entitlement program
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Where Do You Fall?
• Small estate - own a home, less than $100,000 in other assets - Medicaid may be your best plan
• Large estate - $2 Million plus - self insure may be best
• Stuck In The Middle - not rich enough and not poor enough
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Summary
• Know the facts• Extra Credit• Ask Colin a question• Take the quiz, send me your
answers• Schedule a discovery meeting
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Class Dismissed
• See you next week• Taxes and LTC Insurance