Does Medicaid Cover Long Term Care?

DOES MEDICAID COVER LONG TERM CARE?

Medicaid is designed to help people if they meet certain criteria where - most of the time - benefits will begin after the personal assets are depleted. It is often referred to as welfare of elderly.

In theory Medicaid is designed to cover funding for medical and health-related services for people with limited income, and the biggest aspect of Medicaid is nursing home coverage. However, about 60% of Americans are not covered by Medicaid.

Medicaid is not a social insurance program; rather it is a need based welfare program, the eligibility for which is determined by the economic abilities and income of a family or individual. Though Medicaid does in fact cover more health care services that Medicare, and insofar as that is concerned does cover Long term care to some extent, its eligibility is a stumbling block. In any case the range of facilities provided therein cannot compare with the kind of assisted living coverage offered by LTC insurance.

Demonstration of financial need is the primary requirement to show eligibility for Medicaid. One has to give proof that there is no financial recourse left; that economic resources are so depleted as to be unable to cover medical bills being accrued. Further more, poverty is not the only determinant that qualifies a person to receive benefit of Medicaid. The individual also has to fall within one or the other designated eligibility groups.

Also since Medicaid is a federal funding program, its rules do vary from state to state and in some states it is more difficult than in others to be eligible to receive the benefit of Medicaid. Thought the basic framework is the same, eligibility rules do differ substantial in different states.