MEDICAID CASE STUDY:
MARRIED COUPLE WITH ONE SPOUSE GOING INTO THE NURSING HOME

MEET ARTHUR & MARY

Arthur was recently diagnosed with dementia and is facing a nursing home that costs $8,500 per month. His wife Mary worries that paying the nursing home bill will deplete their life savings. So, she meets with a local Elder Law attorney to learn about their options to qualify Arthur for Medicaid benefits.

Arthur's Age: 81

Mary's Age: 78

CASE FACTS

ARTHUR'S MONTHLY INCOME

$2,000

ASSETS

$300,000

MARY'S

MONTHLY INCOME

$1,500

MONTHLY NURSING

HOME COST

$8,500

LEGAL STRATEGY:
TURN THE COUPLE'S "EXCESS" COUNTABLE ASSETS INTO AN INCOME STREAM FOR MARY.

1.

STEP ONE:

DETERMINE THE

SPEND-DOWN AMOUNT

Mary is allowed to retain up to one-half of the couple’s countable assets, not to exceed the maximum Community Spouse Resource Allowance (CSRA) of $137,400. Arthur is allowed to keep $2,000. So, Medicaid will tell the couple they must “spend-down” $160,600 before Medicaid will pay Arthur’s nursing home bill.

2.

STEP TWO:

IMPLEMENT THE PLAN

Instead of “spending-down” the

$160,600, an Elder Law Attorney can convert it into an income stream for Mary because Mary’s monthly income does not “count” when determining Medicaid eligibility for Arthur.

3.

STEP THREE:

APPLY FOR MEDICAID

Converting the couple’s “excess”

countable assets into an income

stream for Mary will make Arthur

immediately eligible for long-term care Medicaid.

*

RESULT:

Medicaid pays Arthur’s nursing home bill each month, and we saved $160,600 for Mary.

Countable Assets:

Mary's CSRA:

Arthur's Allowance:

 

Excess Countable Assets:

$300,000

-$137,400

-$2,000

 

$160,600

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AMOUNT SAVED:

$160,600

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* All situations are different. These strategies require a very specific type of planning. For protection of your family, please work with an experienced Elder Law attorney.