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Medicaid

Q&A: An aging relative is spending her nest egg on round-the-clock care. What happens when the money runs out?

October 22, 2024 By Liz Weston

Dear Liz: A family member is 90 and lives by herself at home. She has around-the-clock caregivers paid for by her investment accounts. Her teacher pension pays for all everyday expenses. She is high maintenance and unwilling to accept she will one day run out of money for caregivers. What would you suggest?

Answer: That depends on how much money she has, and why you’re asking.

In-home, round-the-clock care can be mind-bogglingly expensive. The median cost nationally for 24/7 at-home caretaking was about $24,000 a month in 2023, according to Genworth’s latest “Cost of Care” survey. By contrast, the median cost for a private room in a nursing home was closer to $10,000 a month.

Not many people could pay for around-the-clock care for long, but your relative may be one of the exceptions. If she has enough savings to pay for care for a few years, then perhaps she’s making the calculated gamble that she’ll run out of breath before she runs out of cash. (And if she’s the suspicious type, she may be convinced your concern is more for your potential inheritance than her well-being.)

Once her resources are depleted, though, her situation could become pretty bleak. Her income may be too high to qualify for Medicaid, the government program that otherwise might pay for nursing home care. (In California, the program is known as Medi-Cal.) Perhaps her home could be sold to pay her care. If not, she might have to turn to relatives for financial help.

If you’re one of the relatives she would turn to, then you can certainly let her know how much help you could afford to give her, if any. But first, suggest a session with an elder law attorney who can review her situation, calculate how long her resources might last and offer suggestions for managing her care bills. She may be more willing to listen to a professional third party than to her family. You can get referrals from the National Academy of Elder Law Attorneys at www.naela.org.

Filed Under: Elder Care, Q&A Tagged With: caregivers, long term care, Medi-Cal, Medicaid

Q&A: An update on the inheritor trying to stay below the poverty line

August 12, 2024 By Liz Weston

Dear Liz: I have an update about a recent question in your column. A reader wrote that they had been low income but had recently inherited $175,000. You noted that Medicaid has strict asset limits. Actually, that is no longer the case in California, where Medicaid is known as Medi-Cal. I just received literature from it that says, “A new law means assets will not be counted during Medi-Cal renewals.”

Answer: Again, quite right! Some other states have increased asset limits for Medicaid, the government health program for the poor, but California is the first to remove asset limits entirely as of January 2024.

This column appears in different states, which can vary dramatically in their laws and policies. That’s why I constantly suggest getting personalized advice from attorneys, tax pros and financial planners. A column can dispense general education but can’t offer individualized advice tailored to the realities of where you live.

Filed Under: Follow Up, Inheritance, Q&A Tagged With: IRA inheritance, Medi-Cal, Medicaid

This week’s money news

July 29, 2024 By Liz Weston

This week’s top story: How to get into college without applying. In other news: Solar panels in Ohio, project 2025 calls for big changes to Medicare, Medicaid, and 5 ways to practice financial self-care.

Direct Admissions: How to Get Into College Without Applying
If your senior year of high school approaches, direct admissions can help you get into college. A growing number of states are offering this path to college, and companies like Common App and Niche also provide direct admissions to students regardless of where they live.

Solar Panels in Ohio: Costs and Incentives in 2024
Ohio solar panel costs are slightly lower than the national average.

Project 2025 Calls for Big Changes to Medicare, Medicaid
The nearly 900-page conservative policy platform proposes major overhauls for a wide range of government programs and agencies.

5 Ways to Practice Financial Self-Care
Start with reflecting on your past and goals, and then make a customized plan.

Filed Under: Liz's Blog Tagged With: college, direct admissions, Financial self-care, Medicaid, Medicare, Project 2025, solar panels

Q&A: An inheritance sounds great, but what will it mean for my free meds?

July 29, 2024 By Liz Weston

Dear Liz: I live on Social Security alone, which puts me at the poverty level. The state pays for medical and dental premiums, so I have no copay for doctor visits or prescriptions. I was just notified that I was left $175,000. If this shows up in my bank account, I will lose all the medical benefits I’m receiving. My medications total $80,000 a year. I’d like to at least have some access to the funds to make some home repairs that I’ve needed for 20 years and to prepay my future funeral expenses.

Answer: Inheritances can wreak havoc with government benefits such as Medicaid (called Medi-Cal in California), which have strict income and asset limits. But you may have options to put the money in trust, says Jennifer Sawday, an estate planning attorney in Long Beach. Consult a special needs trust planning attorney for details.

Filed Under: Inheritance, Q&A, Social Security Tagged With: Inheritance, Medicaid, special needs trust

Q&A: Stimulus funds don’t count as income

May 18, 2020 By Liz Weston

Dear Liz: I hold power of attorney for my aunt, who is in a local nursing home. Medicaid pays the bulk of her cost to stay there. Her $1,200 stimulus check was just deposited into her bank account at the end of last month. The state Medicaid rules require that she not have more than $2,000 in assets. I try to keep her bank balance below that each month, which can be a challenge. Do you have any idea how the state Medicaid will handle this additional income to her bank account? Will I have to pay the nursing home additional money from it or reimburse Medicaid? Or will she be allowed to keep the whole amount? I want to be judicious with her finances and not screw up her eligibility for Medicaid (her greatest fear is being thrown out on the streets).

Answer: Your aunt is lucky to have you, and fortunately there’s no need to worry. The payments are not considered income for recipients of Supplemental Security Income (SSI), according to a blog post by Social Security commissioner Andrew Saul. State Medicaid programs are not allowed to impose eligibility requirements that are stricter than SSI standards, according to ElderLawAnswers, a referral site for attorneys who specialize in issues relating to seniors.

Filed Under: Coronavirus, Elder Care, Q&A Tagged With: Coronavirus, Medicaid, q&a, stimulus payment

Wednesday’s need-to-know money news

October 9, 2019 By Liz Weston

Today’s top story: Understanding the differences between Medicare and Medicaid. Also in the news: How hungry college students can get help, Robinhood takes another shot at cash management accounts, and a new scam that asks for your bank PIN on the phone.

Hunger on Campus: How College Students Can Get Help

What Is the Difference Between Medicare and Medicaid?
Understanding the government-run health care plans.

Robinhood Takes Another Shot at Cash Management Accounts
This time with FDIC backup.

Beware a New Scam That Asks for Your Bank PIN on the Phone
This is a particularly savvy scam.

Filed Under: Liz's Blog Tagged With: cash management, college students and hunger, Medicaid, Medicare, phone scams, Robinhood, scams

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