It is more important than ever to plan for long-term care.
According to the Genworth Cost of Care Survey the median annual cost of nursing home care in a semi-private room in Massachusetts is just under $129,000. Single occupancy assisted living averages just under $64,000 per year.
Census data projections predict that by 2030 up to 21% of the population of Massachusetts will be 65 and over. According to the 2015 Massachusetts Healthy Aging Data Report, more than 9% of adults age 65 or older in Massachusetts are living in poverty.
Long-term care insurance is available to help cover some of the costs of long-term care but may be cost prohibitive for those living in poverty. Long-term care MassHealth is available to cover costs for those who have exhausted their resources. An important challenge for long term care planning is to prevent losing all of one’s assets. Those who have prepared themselves and their families for retirement may find all their assets drained to pay for long-term care.
Regulations require that individuals entering long-term care pay for the services they can afford before MassHealth pays. This requires a financial review of their income and assets. It’s difficult to know when or if anyone will need long term care. It is important to plan ahead and protect one’s assets well before a long-term care decision is made.
Financial eligibility for MassHealth is covered by 130 CMR 520.000. These regulations explain income and asset limitations, transfer of asset rules, and exceptions. Important parts of these regulations include explaining the 5 year look back period which limits what assets can be transferred and not counted during the 5 year period before admission to a long-term care facility. They also cover “spend down” rules explaining what is included in the $2000 limit on assets. There are also rules regarding the residence of the person entering care covered by 130 CMR 515.00 including liens and estate recovery. These and other rules can be complex but can be planned for.
Consulting an experienced elder law attorney will provide the guidance you need to make informed decisions about long-term care planning.