Long Term Care Planning Course - Part 5 of 8


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This is the powerpoint version of my online long term care planning course. for a free report on long term care planning and to register for the full version of the course with audio and video and free downloads, go to www.MDLongTermCareInsurance.com

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Long Term Care Planning Course - Part 5 of 8

  1. 1. Long Term Care Planning Course Lesson #5 Complete Money Management, Inc. Colin Meeks, Certified Financial Planner ®
  2. 2. Medicaid Anyone?? <ul><li>Medicaid is the same as Medical Assistance </li></ul><ul><li>Administered by the State and uses Federal and State funds </li></ul><ul><li>A program to provide basic health benefits to those who do not have sufficient resources and income to provide for themselves </li></ul>
  3. 3. Medicaid Will Take Care Of Me <ul><li>If you have assets, probably not. </li></ul><ul><li>Not an entitlement program </li></ul><ul><li>Strict qualification process for long term care benefits </li></ul><ul><li>Not like it used to be </li></ul>
  4. 4. Medicaid “Spend Down” <ul><li>You have money </li></ul><ul><li>You need long term care </li></ul><ul><li>You spend almost all of your money </li></ul><ul><li>Medicaid verifies that you have spent all of your money </li></ul><ul><li>You may qualify for Medicaid </li></ul>
  5. 5. Medicaid is your Plan <ul><li>If you do not plan to buy insurance or set aside a significant amount of your own money to self insure, Medicaid is your plan </li></ul><ul><li>If you do not have a plan in place right now, Medicaid is your plan, so be sure to know all the facts </li></ul>
  6. 6. Deficit Reduction Act of 2005 (DRA 2005) <ul><li>See “extra credit” download </li></ul><ul><li>Made most “Medicaid Planning” obsolete </li></ul><ul><li>Gifting, trusts, annuities, “hiding assets”,etc., are all pretty much done </li></ul><ul><li>With few exceptions, this type of planning is probably not a good idea </li></ul>
  7. 7. Medicaid Spend Down <ul><li>Avoid this at all costs </li></ul><ul><li>Forced to sell, liquidate, cash in assets an may incur unnecessary penalties, taxes, losses </li></ul><ul><li>Stocks, bonds, mutual funds, CD’s, annuities, IRA’s, Real Estate, life insurance </li></ul>
  8. 8. Still Don’t Believe Me? <ul><li>Many of you will not </li></ul><ul><li>You’ll go off what your friend told you or your uncle did 5 or 10 years ago </li></ul><ul><li>This is an expensive education </li></ul><ul><li>Medicaid spend down rules are strict, getting stricter, and they do a very thorough job of verification </li></ul>
  9. 9. Practical Thinking…… <ul><li>Higher medical costs </li></ul><ul><li>Aging population </li></ul><ul><li>All of the other financial obligations that the Gov’t has - Social Security, Medicare to name 2 </li></ul><ul><li>They cannot, no matter who is in charge, afford to have Medicaid pay for long term care for everyone. </li></ul>
  10. 10. Medicaid In Short… <ul><li>If you can pay, you will pay </li></ul><ul><li>When you can’t pay anymore, Medicaid may pay </li></ul><ul><li>Medicaid will “Trust but Verify” (just like Ronald Reagan did with Russia) </li></ul><ul><li>Is a qualification program, not an entitlement program </li></ul>
  11. 11. Where Do You Fall? <ul><li>Small estate - own a home, less than $100,000 in other assets - Medicaid may be your best plan </li></ul><ul><li>Large estate - $2 Million plus - self insure may be best </li></ul><ul><li>Stuck In The Middle - not rich enough and not poor enough </li></ul>
  12. 12. Summary <ul><li>Know the facts </li></ul><ul><li>Extra Credit </li></ul><ul><li>Ask Colin a question </li></ul><ul><li>Take the quiz, send me your answers </li></ul><ul><li>Schedule a discovery meeting </li></ul>
  13. 13. Class Dismissed <ul><li>See you next week </li></ul><ul><li>Taxes and LTC Insurance </li></ul>