Most people already know that a skilled nursing facility (SNF) – what many call a “nursing home” – is very expensive. Assisted living costs and other senior housing options also surprise most of my unsuspecting clients. Do you know how much? If you don’t, a quick google search will give you the national average yearly costs for SNF. If you live in Minnesota, the state-wide annual average sits roughly at $112,000 or so for a private room, based on 2025 numbers.
But, WHO will pay for this if you need it? Some believe (erroneously), if they’re over 65 years old, Medicare will pay.
Medicare does not cover long-term care costs. It covers many things, but not specifically long-term care after the first 100 days (at various levels of coverage). Therefore, if you don’t have your own funds to pay for your long-term care needs (or long-term care insurance funds to do so), you will likely require Medicaid, which does cover long-term care costs. In Minnesota, it’s called Medical Assistance or MA, but it is funded by Medicaid, a Federal program. Medicaid, as you may already know, is not a benefit to which we are entitled when we turn 65. Rather, it is a program for those who are impoverished – (can’t afford it), and therefore, require the assistance of the government for their basic needs, which in this case, are very expensive intensive care in a specialized facility. In other words, the care is what we are entitled to, not the monetary benefit of its cost. So, if you need this care and can’t afford it, someone else has to pay for it. This is why you are required to use your assets first before you use public funds.
This would explain, I hope, why, if you require this assistance, it is difficult to “protect” your assets and/or income. And, if you require MA, your childrens’ inheritance or your spouse’s assets will likely be significantly affected. The entire reason for MA is to make sure that all people have access to this important, necessary, (and expensive) care – even people who cannot afford it. Therefore, there are necessary and sometimes painful “spend-down” requirements and strict protocols for that process that consistently confirm that the recipient is, in fact, someone who requires this medical and financial assistance.
This is where an Elder Law Attorney can be of assistance. The rules of eligibility (both physical/medical and financial) can be complicated and overwhelming for some. Planning for long-term care can include private funds, long-term care insurance funds, some combination of both, and MA funds. In all cases, planning for your long-term care needs can benefit from the advice of an attorney who specializes in this area. Single, married, divorced, remarried, with children, without children, wealthy, middle-income, or low-income – you can benefit from thinking through your potential long-term care needs and how you will pay for those needs.
Don’t stick your head in the sand! Talk with an Elder Law Attorney – understand your options and plan for your future so you can decide for yourself what is most important.
This blog is written by Bridget-Michaele Reischl, Attorney DECORO LAW OFFICE, PLLC tmw.157.myftpupload.com/