Nursing Home Care in New Jersey is Extremely Expensive: Protect Your Family’s Finances By Planning Ahead
A private room in a nursing home in New Jersey can cost more than $10,000 per month. It is an astronomical figure that can put a tremendous financial strain on families. Even a seemingly short long-term care need can quickly start to eat away a person’s life savings—and the public support options are somewhat limited. It is crucial that you plan ahead for possible future long term care costs. Here, our estate planning lawyer in New Jersey highlights the most important steps to take to protect your family’s finances from the future risk of nursing home care costs.
Nursing Home Care is Expensive—and Largely Not Covered By Medicare
Many families are surprised to learn that Medicare provides very limited coverage for nursing home care. Indeed, the federal program only provides coverage for short-term stays that are medically necessary following a hospitalization. It does not cover custodial care. It does not cover most long-term nursing home care needs. Getting coverage can be an issue because, in New Jersey, the cost of nursing home care can be prohibitively expensive.
Medicaid Provides Protection (But Only for those With Limited Financial Resources)
While Medicare generally does not provide nursing home coverage, Medicaid can fill the gap. In fact, Medicaid serves as a vital resource for long-term nursing home care for many people and families in New Jersey. With that being said, the state/federal program is designed to assist those with limited financial resources. In New Jersey, people must meet stringent income and asset criteria to qualify for Medicaid coverage of nursing home care. For those with assets or income above the threshold, they must first “spend down” their resources on healthcare costs before they can become eligible for assistance. In other words, Medicaid makes many people spend their savings first before they can get their nursing home costs covered.
Why Planning Ahead Makes the Difference: New Jersey has a 60-Month Medicaid Lookback
Here is the good news: A proactive plan can help to protect your assets from the risk of future nursing home care costs. One critical aspect of financial planning for nursing home care in New Jersey is understanding and preparing for the Medicaid 60-month lookback period. The New Jersey Department of Banking and Insurance explains that our state’s “minimum time limit requires transferring assets at least 60 months prior to making an application for Medicaid.” Put another way, any assets transferred into a Medicaid-compliant trust at least five years before a person’s nursing home care need will not be subject to review by Medicaid. Those assets are protected from the risk of long-term care costs.
Speak to Our New Jersey Estate Planning Attorney Today
At Poulos LoPiccolo PC, our New Jersey estate planning lawyer has extensive experience with long term care planning. If you have any specific questions about nursing home care plans, we are more than ready to help. Contact us today to arrange your confidential, no obligation initial consultation. From our Monmouth County office, we provide long-term care planning support across New Jersey.
Source:
nj.gov/dobi/ins_ombudsman/ltcguide.htm
