When a parent's savings run out
Long-term care can use up savings faster than families expect. This guide covers planning ahead, how Medicaid eligibility works in general, income programs, and free local help.
General information only. This guide is not medical, legal or financial advice. Talk with a physician, and with an elder-law or financial professional where money or legal papers are involved, about your own situation.
Planning before money runs out
Many families start planning well before money runs out. Applying for help can take time, so an early start helps avoid a gap in care.
Questions families often ask a community:
- Do you accept Medicaid, and for which kinds of care?
- What happens when a resident's private funds end?
- Can a resident stay in the same room or apartment on Medicaid?
- Is your policy written in the contract?
Medicaid and spend-down
For people 65 or older, Medicaid generally looks at income and resources using rules like those for SSI. Some states use stricter rules.
Many states have a spend-down option. People whose income is too high can qualify once their medical costs bring it down to the state's level. Gifts or sales below value during a look-back period can delay long-term care coverage. For a spouse at home, see our Medicaid guide.
Income programs that may help
A few programs help people with low income and few resources. The limits are set each year, and each program lists the current figures.
- Supplemental Security Income (SSI) pays monthly benefits to people with little income and few resources. It covers people 65 or older, or with a disability or blindness.
- Medicare Savings Programs are run by states and help pay Medicare premiums, and for some people, deductibles and copays.
- People in some Medicare Savings Programs also get Extra Help with prescription drug costs.
- You apply for a Medicare Savings Program through your state Medicaid program.
Free local help
Free help is available to sort out what your parent may qualify for. These services give general guidance and point you to local programs.
- A State Health Insurance Assistance Program (SHIP) offers free, unbiased Medicare counseling one-on-one.
- The Eldercare Locator connects older adults and families to local services. Call 1-800-677-1116 or search online.
- Your state Medicaid agency can explain eligibility and how to apply.
Frequently asked questions
It depends on the community and the state. Ask the community in writing whether it accepts Medicaid and what happens when a resident's private funds end.
In many states, people with high care costs can qualify once their medical bills bring their income down to the state's level. Your state Medicaid agency can tell you whether it has this option.
Medicare.gov says to apply even if you think your parent will not qualify. Some states allow higher income or resources than the federal limits.
Sources
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