long term care planning course - part 5 of 8
DESCRIPTION
This is the powerpoint version of my online long term care planning course. for a free report on long term care planning and to register for the full version of the course with audio and video and free downloads, go to www.MDLongTermCareInsurance.comTRANSCRIPT
Long Term CarePlanning Course
Lesson #5Complete Money Management, Inc.
Colin Meeks, Certified Financial Planner®
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
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
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
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
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
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
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
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.
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
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
Summary
• Know the facts• Extra Credit• Ask Colin a question• Take the quiz, send me your
answers• Schedule a discovery meeting
Class Dismissed
• See you next week• Taxes and LTC Insurance