How to Prepare for Long-Term Care Costs

As we age, the need for long-term care shifts from "if" to "when." For many seniors, the high costs of healthcare and long-term care can cause serious concern, especially when those costs don't align with a fixed income. Skilled nursing care is a popular option for long-term care, but the price tag makes it difficult for many aging adults to afford. The good news is that with the right estate planning tools, you can ease these financial worries and prepare for the care you might need in the future.

In this article, we'll explore the importance of planning for long-term care, why Medicare alone isn’t a reliable option, and how Medicaid planning can help you secure the care you deserve without losing your hard-earned assets.

Why Is Affording Long-Term Care a Major Concern for Seniors?

For most seniors, long-term care becomes a reality as they age. In fact, statistics show that around 70% of individuals 65 or older will need some form of long-term care. Unfortunately, the cost of care can be overwhelming. Many seniors live on a fixed income from Social Security, pensions, or retirement accounts, which often isn’t enough to cover both living expenses and long-term healthcare costs.

Skilled nursing facilities, a preferred choice for many, come with steep fees. The average stay in a skilled nursing facility is longer than most people anticipate, and monthly costs can quickly deplete savings. That’s why more seniors are turning to Medicaid planning as a solution to bridge the gap between their income and the cost of care.

Read more in our article: Paying for Nursing Home Care in Omaha.

Is Medicare a Long-Term Care Solution?

No, Medicare is not a reliable long-term care solution.

While many Omaha seniors assume that Medicare will cover their long-term care needs, it has significant limitations. Medicare primarily covers short-term care after hospitalization or injury but is not designed to handle extended stays in nursing homes or ongoing care for chronic conditions.

Medicare Part A offers some coverage for skilled nursing care, but only under strict conditions and for a limited time. Once these benefits run out, you are left to cover the remaining costs on your own, which can be financially devastating without the proper planning.

How Does Medicaid Help Seniors Afford Long-Term Care?

Unlike Medicare, Medicaid is specifically designed to assist with long-term care expenses for those who qualify. Medicaid covers the cost of skilled nursing facilities and other long-term care services, making it a critical safety net for seniors with limited resources.

However, qualifying for Medicaid requires you to meet specific income and asset thresholds. This is where Medicaid planning becomes essential. By working with an Omaha elder law attorney, you can protect your assets and potentially qualify for Medicaid without spending down everything you've worked hard to save.

What Is Medicaid Planning?

Medicaid planning involves using legal strategies to help you qualify for Medicaid while preserving as many of your assets as possible. This could involve:

• Establishing irrevocable trusts to protect your property and savings.
• Strategically gifting assets to reduce your countable assets for Medicaid eligibility.
• Creating a Medicaid spend-down plan, where non-exempt assets are converted to exempt assets (like home improvements or debt payments) before applying for benefits.

At Legacy Design Strategies in Omaha, we help seniors navigate these complex rules to ensure they receive the care they need without sacrificing financial security.

Read more in our article: What's the Difference Between Medicaid Planning and Estate Planning?

How Can Estate Planning Protect Your Assets and Secure Care?

Estate planning isn’t just about passing on wealth to your heirs—it's also a key tool for securing your long-term care. Proactively planning for long-term care costs can save you from draining your assets and ensure you're taken care of in the years ahead.

An experienced Omaha elder law attorney can help you both plan for long-term care costs and create an estate strategy tailored to your unique needs. Common estate planning tools include:

• Irrevocable trusts to protect your assets from being counted for Medicaid eligibility.
• Powers of attorney to ensure trusted individuals can make healthcare and financial decisions on your behalf if you become incapacitated.
• Living wills to outline your preferences for medical care in the future.

By creating a solid plan today, you’ll be better prepared for tomorrow’s challenges.

Key Takeaways on Omaha Medicaid Planning

• Look ahead: Long-term care costs are inevitable, so it’s critical to plan early.
• Understand Medicaid: Eligibility requirements are complex, but they can be managed with the right strategies.
• Consult an attorney: Work with an experienced elder law attorney to protect your assets and secure the care you need.

Read more in our article: Preparing for Your Golden Years with an Omaha Medicaid Planning Attorney

Request a Consultation with an Omaha Medicaid Planning Attorney

Planning for long-term care can feel overwhelming, but it doesn’t have to be. At Legacy Design Strategies, we’re here to help you navigate the complexities of Medicaid planning and estate planning to ensure you get the care you deserve without sacrificing your financial future.

Don’t wait until it’s too late—contact our Omaha office today to request a consultation and start protecting your legacy.