Long-Term Care Planning: Putting Things in Order for the Future

What is Long-Term Care Planning, and Why is it Important?

Long-term care planning encompasses a range of medical, non-medical, and assisted living services designed to support elderly individuals and others with disabilities or chronic illnesses. These services help individuals maintain their daily health, personal needs, and essential activities such as eating, dressing, bathing, and managing medical care.

In Pennsylvania, long-term care includes home care, nursing home care, and personal care homes, each offering different levels of support depending on the individual’s needs.

• Home care allows individuals to remain in their homes while receiving help from care providers. This care can range from assistance with daily activities to specialized healthcare services.
• Nursing home care offers 24-hour supervision and care for residents, often elderly individuals who require more intensive support due to physical or cognitive decline.
• Personal care homes provide group housing with less intensive care than nursing homes. Residents typically have more independence, often living in private or semi-private rooms, while still receiving assistance with daily tasks.

When Should You Begin Long-Term Care Planning?

A common misconception is that long-term care planning is only for the elderly. However, injuries or illnesses that limit your ability to care for yourself can occur at any age. No matter your age, having a long-term care plan in place ensures your future needs are met.

If you haven’t started planning for long-term care, contact our law firm to schedule a free consultation. During your 15-minute strategy session, we will discuss your options and help you develop a plan tailored to your needs.

What Are the Costs of Long-Term Care?

The cost of long-term care can be a significant financial burden, and many people are unprepared. In Pennsylvania, the average cost of in-home care is around $30 per hour, while nursing home care can cost approximately $400 per day, or nearly $13,000 per month.

Given the high costs, it is crucial to start planning early. Our legal team can help you explore options to manage these expenses and protect your assets.

How to Qualify for Medical Assistance in Pennsylvania?

Medicaid is an essential component of long-term care planning. This federal program helps cover medical costs for individuals who qualify based on both medical and financial criteria. Medicaid for long-term care can cover in-home or nursing home care, but recipients must contribute some of their assets or income toward their care.

If the recipient is married, the spouse who remains at home may be allowed to retain a portion of the couple’s assets and income.

Who is Eligible for Long-Term Care and Medicaid Planning?

To qualify for long-term care and Medicaid planning in Pennsylvania, applicants must meet specific eligibility requirements, including:

• U.S. citizenship or legal permanent residency
• Residency in Pennsylvania with the intent to remain
• Being aged 65 or older, disabled, or blind
• Meeting medical eligibility as “nursing facility clinically eligible” (NFCE)
• Meeting financial eligibility requirements, meaning having countable assets below the allowable limit.

What Are Exempt and Non-Exempt Assets?

To qualify for long-term care and Medicaid planning in Pennsylvania, applicants must meet specific eligibility requirements, including:

• U.S. citizenship or legal permanent residency
• Residency in Pennsylvania with the intent to remain
• Being aged 65 or older, disabled, or blind
• Meeting medical eligibility as “nursing facility clinically eligible” (NFCE)
• Meeting financial eligibility requirements, meaning having countable assets below the allowable limit

What Are Exempt and Non-Exempt Assets?

Eligibility for Medicaid depends on your countable assets. Certain assets are “countable” for eligibility purposes, while others are exempt.

Countable assets include:

• Annuities
• Certificates of deposit
• Checking and savings accounts
• Investments, mutual funds, stocks, and bonds
• Real estate (other than your primary residence)
• Retirement accounts

Exempt assets include:

• Burial plots
• Pension funds for a community spouse
• Household goods (furniture, appliances, etc.)
• Life insurance
• Assets protected by a long-term care partnership
• Personal valuables (e.g., clothing, jewelry, hobby items)
• Your primary motor vehicle
• Your primary residence

What Different Estate Planning Methods Can Help You Protect Your Assets?

Our law firm specializes in estate planning strategies to help protect your assets from being depleted by the high cost of long-term care. We will work closely with you to analyze your income, assets, and financial situation and develop a customized asset protection strategy.

Some methods we may recommend include:

• Converting countable assets into exempt assets
• Gifting assets
• Purchasing immediate annuities
• Establishing irrevocable trusts, such as burial trusts
• Obtaining long-term care insurance
• “Spending down” assets to meet Medicaid eligibility requirements

What Happens to Your Estate After You Pass Away?

Estate recovery allows Pennsylvania to recover Medicaid costs from the estates of recipients who received benefits after the age of 55. The state can recover costs for care provided within the last five years of the recipient’s life, but certain protections apply. For example, recovery is postponed if there is a surviving spouse or a dependent who is blind, disabled, or underage.

For more information on estate recovery and the “undue hardship” exceptions, contact our legal team.

Schedule a Free 15-Minute Consultation with Our Compassionate Legal Team Today

Our law firm has extensive experience assisting clients with complex long-term care and estate planning needs. Schedule your free case evaluation today to discuss your needs and develop a plan for securing your future.

Call us at 267-281-1675 to set up your appointment.