Medicaid is a social insurance program jointly funded at the state and federal level that pays for health services for qualifying low-income individuals. Since Medicaid is funded at the state level eligibility and health services covered vary depending on which state the individual resides in. Medicaid helps pay for nursing home care as well as home and community LTC services for older low income individuals with limited assets that fall within their respective state eligibility group qualifications.
When dealing with long-term care Medicaid is more significant than Medicare but it is possible for an individual to be dual eligible qualifying for both Medicare and Medicaid. Many elderly people who do not have LTC insurance end up paying for LTC services themselves and quickly realize their financial resources are not sufficient to cover extended stays at a nursing home. Those who need long-term care may end up relying on friends and family but few people have the financial resources to sustain a lengthy stay at a nursing home. After the elderly individual has liquidated all their assets to pay for their nursing home stay they end up qualifying for Medicaid as they now have no income or other assets. Medicaid is the primary payor of LTC services in the United States due to individuals exhausting their financial resources in their elderly years.
Many elderly individuals will find themselves in need of long-term care services but without the financial resources to cover the extraordinary costs.
Insurance terms, definitions and explanations are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in individual insurance contracts, policies or declaration pages, which are controlling. Such terms and availability may vary by state and exclusions may apply.
Comments