When a loved one needs nursing home care, it can be an
emotionally and mentally straining experience. It may be difficult to accept
that someone we look up to may need assistance with everyday tasks to the point
where they need to enter a nursing home or an assisted living facility. Furthermore,
with so many nursing homes and assisted living facilities the process of
finding a suitable place for your elder loved one. Each one with different—it
raises the question, which one is best?
As a senior placement providers and elder care advisors, we
are in regular contact with our network of nursing homes and assisted living
facilities. Thanks to this network and constant communication, we know which
places accept Medicaid and which places are private pay only. Additionally, we
also keep in mind the specific programs and extra services they have.
Consider this case study: Ralph and Alice.
Ralph and Alice were high school sweethearts who lived in
Saddle River, NJ, their entire adult lives. Two weeks ago, Ralph and Alice
celebrated their 51st anniversary. Yesterday, Alice, who has
Alzheimer’s wandered away from home. Hours later she was found sitting on a
street curb, talking incoherently. She was taken to a hospital and treated for
dehydration. Ralph comes to see you after their family doctor tells him he
needs to place Alice in a nursing home. He tells you they both grew up during
the Depression and have always tried to save something every month. Their
assets, totaling $100,000, not including their house, are as follows:
Savings Account……………………….$15,000
CDs…………………………………………..$45,000
Money Market Account……………$37,000
Checking Account……………………..$3,000
Residence (no mortgage) .………..$650,000
Ralph gets Social Security and Pension Checks totaling$1,500
each month. Alice’s check is $450. His eyes fill with tears, as he says, “At
8,500 to the nursing home every month, our life savings will be gone in less
than three years!” What’s more he’s concerned he won’t be able to all their
Social Security checks. There’s good news for Ralph and Alice. It’s possible he
will get to keep his home and most of their assets… and still have the state
Medicaid program pay Alice’s nursing home costs. While the process may take a
little while, the end result will be worth it. To apply for Medicaid, he will
have to go through New Jersey Family Care. If he does things strictly according
to what FSD tells him, he will only be able to keep about ½ his assets (or
about 50,000) plus he will keep is income. But the end results can be better
than the traditional spend down, which everyone talks about. Ralph might be
able to turn the spend down amount of roughly $50,000 into an income stream
that will increase his income and meet the Medicaid spend down virtually right
away. In other words, if handled properly Alice may be eligible for Medicaid
from the first month that she goes into the nursing home. That’s why it’s
important to have an Elder Care and Special Needs Advisor to guide you through
the system and the Medicaid Process to find the strategies that will be most
beneficial in your situation. So, he will have to get advice from someone who
knows how to navigate the system. But with proper advice he may be able to keep
what he and Alice have worked so hard for. This is possible because the law
does not intend to impoverish one spouse while the other needs care in a
nursing home. This is certainly an example of where knowledge of the rules and
how to apply them can be used to resolve Ralph and Alice’s dilemma. Of course,
proper Medicaid planning differs according to the relevant facts and
circumstances of each situation as well as state law.
To learn more about Federal National Funding click
here or to have your questions regarding senior placement answered personally by one of our associates, please call out office at 201-342-3300. One of our associates will be happy to speak to you.
