Medicare and Nursing homes

  It is a mistaken belief that Medicare pays for nursing home care for the long time.  It may cover some of the costs if one is sent to a nursing home for a short stay, to convalesce for   a week or two but once one is placed in a nursing home for long term care the patient is responsible for his/her own care.  If the cost is more than the patient can afford (probably around $8,000.00 plus cost of medicine) then the patient can apply for Medicaid.
  When my Mom was placed in a facility, she was allowed to keep $2000 plus her $70.00 a month widows benefit from the VA, plus prepaid funereal expenses.  She retained ownership of her home as long as it was her intension of moving back into it.  I believe that the amounts have been changed but it has been a couple of years ago so one would have to check with their county agent to be sure of the current law.
   To be sure you understand, the $2,000.00 is the total amount she is allowed to retain at the time she is approved which must be accomplished in a 60 day period of time.  It is not two thousand a month nor can the money be replenished once it is spent.   The $70.00 a month is only for the spouse of a veteran and can only be used for the patients personal expenses.  One cannot pay bills with that money.
  If the patient lives a short period of time, then the family heirs can keep the house if they satisfy the nursing home bill.  For example, if the patient lives 3 months and Medicaid has paid those three months bills, then the $24,000.00 will have to be paid out of the proceeds  of the sale of the house or out of the funds of the heirs.  If the heirs can't or don't want to keep the house, they can sell the house, repay the $24,000.00 and divide the rest.
  If, like in my Mom's case, she lived for 18 months while collecting Medicaid totaling 144,000.00 and owned a house worth much less, the house was sold and all the proceeds turned over to Medicaid and the debt was satisfied.  
   The good news is that if the patient has lots of assets then one can use the assets to repair and improve the home. or one can use the assets to prepaid the nursing home. Any unused prepayment will be returned to the estate.
  The problems I encountered in taking care of Mom was home owners insurance and property taxes, all of which had to be paid out of the $2,000.00.  We kept the water and power on at the house which were small but recurring expenses.
  While it is true that the patient gets a Social Security check, all the patient receives of that check is just enough to pay the premiums on a health insurance.
   For the reasons I have stated it is best to be rich enough to pay the costs out of pocket or poor enough to have no or little assets.  For most people, it is a fact that they will encounter s situation like Mom did.  The only was she could have insured being able to keep her house was to have sold it or given it away at least three years before applying for Medicaid.   If she had transferred any assets, including money and/or property within the three year period of time, then the recipient will most likely have to give the assets back to the estate.
  It seems unfair to most people but the state is actually loaning the patient the money for a nursing facility.  The reason why the patient can only keep a small amount of money is that it is much easier to turn over assets to the long-care nursing facility or fix up the home than it is to try and recover assets illegally spent by the relative or friend care giver.  
   If the patient turns over her/his home to heirs, they run the risk of being forced out of their home.
Unfortunately that happens much more often than one would believe it would.