Here’s what happens to your monthly income, including your pension, if you need to enter a nursing home.
Key Takeaways:
- If you enter a nursing home, your monthly income, including your pension and Social Security, will be used to pay for your care.
- However, there are some exceptions to this rule.
- You may be able to keep some of your income if you have a spouse, a dependent child, or unpaid medical bills.
- You may also be able to use your income to pay for the costs of keeping up your home or apartment while you are in the nursing home.
- It is important to contact an attorney if you have any questions about how this rule will affect you.
What Happens to Your Monthly Income?
If you enter a nursing home and receive Medicaid, the program will generally require you to use all of your monthly income to pay for your care. This includes your pension, Social Security, and any other income you receive.
The nursing home will then bill Medicaid for the difference between your monthly income and the amount that the nursing home is allowed to charge under its Medicaid contract.
Exceptions to the Rule
There are a few exceptions to this rule. You may be able to keep some of your income if you have:
- A spouse: If your spouse is not living in a nursing home, you may be able to give them some of your income. The amount you can give them depends on their income.
- A dependent child: If you have a dependent child, you may be able to keep some of your income to support them.
- Unpaid medical bills: If you have unpaid medical bills, you may be able to use some of your income to pay them off.
- You will be in the nursing home for a short period: If you will only be in the nursing home for a short period of time, you may be able to use your income to pay for the costs of keeping up your home or apartment while you are gone.
What to Do If You Have Questions
If you have any questions about how this rule will affect you, it is important to contact an attorney. An attorney can help you understand your options and make sure that your rights are protected.
How to Protect Your Pension
If you are concerned about protecting your pension from being used to pay for nursing home care, there are a few things you can do:
- Set up a power of attorney: This will allow someone you trust to manage your finances if you become unable to do so yourself.
- Ask about safeguards: When you are choosing a nursing home, ask about the safeguards they have in place to protect residents’ money.
- Use direct deposit: This will help to ensure that your pension payments are not lost or stolen.
- Don’t let the nursing home receive your payments: You should have your pension payments sent directly to your bank account.
- Don’t bank with the nursing home: It is best to avoid banking with the nursing home, as this could make it easier for them to access your money.
By taking these steps, you can help to protect your pension and ensure that it is used for your benefit, not to pay for nursing home care.
Additional Resources
- National Consumer Law Center: https://www.nclc.org/
- Eldercare Locator: https://eldercare.acl.gov/
- National Council on Aging: https://www.ncoa.org/
Note: This information is for educational purposes only and should not be considered legal advice. Please consult with an attorney for legal advice specific to your situation.
How Do I Protect My Assets From Medical Bills?
Retirement medical expenses, such as the price of skilled nursing care or living in a nursing home, can seriously deplete your finances. Making an irrevocable trust and appointing a trustee to oversee it is one way to safeguard some of your assets.
Don’t Let the Facility Receive Disbursements
A nursing home can be appointed a patient’s representative payee. This implies that the facility has the authority to accept federal benefit payments directly on behalf of residents from the Railroad Retirement Board, Department of Veterans Affairs, Department of Defense, Social Security Administration, and Office of Personnel Management. The facility is then expected to use those funds for the benefit of the residents, such as paying for their own reasonable bills.
This arrangement clearly raises the possibility of financial elder abuse, if not through overt nursing home fraud then at least through administrative errors. In certain instances, care facilities have overpaid themselves with that money.
“If a resident has dementia to the extent that it limits his or her ability to handle finances, a trusted authorized representative, often a family member, should handle income and bills,” says Eric Carlson, directing attorney of Justice in Aging, a national organization that uses the power of law to fight poverty in older adults. “Some residents do not have such representatives, and these are the residents at greatest risk.”
THE BIG MEDICAID SECRET NURSING HOMES WON’T TELL YOU
FAQ
Is Social Security enough for a nursing home?
How do I protect my assets from a nursing home in Minnesota?
What happens to assets if you go into a nursing home in Texas?
Who pays for nursing home in New Brunswick?
What if my spouse goes into a nursing home?
Misconception No. 7: “If My Spouse Or I Go Into A Nursing Home, I Will Lose My Home.” The Truth: During your lifetime, your home is an exempt asset if it is owned correctly. It can stay an exempt asset during your entire nursing home stay. The home must be used and titled properly.
Can SSI be reduced if you go to a nursing home?
However, that number can drop dramatically based on your living situation, and in some cases, maybe terminated completely. If you enter a medical facility such as a hospital or nursing home where Medicaid covers more than half the cost of your care, your monthly SSI benefits can be reduced to $30 or less based on your income.
Should you buy long-term care insurance if you don’t go into a nursing home?
However, this coverage is costly, and you may never use it if you or your spouse don’t go into a nursing home. That said, purchasing long-term care insurance could shrink your assets and help the spouse in the nursing home get Medicaid assistance. 4. Shelter Assets with an Irrevocable Trust
How much money can you keep in a nursing home?
If you are single or your spouse is also in a nursing home, you would have to spend down to $2,000 or less in cash or other countable assets. If your spouse lives at home, he or she can also keep at least $23,844 in 2015 or if greater, one-half of the countable assets up to $119,220, and also an income allowance of at least $1,966 per month.