OBBBA and Medicaid Updates Recently, the One Big Beautiful Bill Act (OBBBA) became law. Among the many changes this law makes are some which will impact Medicaid in future. As the aging population grows, these funding changes will directly impact how services are delivered across the nation. Here’s a breakdown of the law as it relates to long term care Medicaid for adults over 65.
Growing old is never easy, as we all know. During our lives, we take time to evaluate what we can and cannot do for ourselves. When we’re kids, we check who can run the fastest compared to other kids. When we’re teenagers, we start to check how tall we are. When we’re adults, we make sure to not get too ambitious in joining the kids on the trampoline without stretching. But when we’re reaching elderly age, we need to make another checklist to make sure that we’re living at our best, and to help ourselves.
When one spouse of an elderly couple is on the road to long term care, and will need that care, either at home or in a nursing home, it is critical that they have certain documents in place to protect their assets if the “healthy” spouse should die before the sick one. If those certain documents are not in place, a huge amount of their assets may be lost under the Medicaid rules if the healthy spouse dies first.
A trust can be used to fulfill many wishes. They are not just for the wealthy. They are much more common than you may realize, but its one of those things people never talk about. Here are some common reasons anyone might want a trust.
I often hear clients say, “I don’t want the State to take all my money.” As a point of fact, the State does not take your money, they simply require you to pay for your care until you qualify for them to pay for this care. This is called spending down your assets. Rest assured however, that there are means to protect your hard-earned assets for your spouse and your family if you follow their rules.
When my grandmother’s dementia progressed, my relationship to her changed. I had been her loving grandchild, who she watched grow. She taught me to sew, make coconut bunny shaped cakes at Easter, and took me on a teddy bear picnic with her best friend Gloria once. Soon I became a beloved person whose name she couldn’t quite recall. In the end I was just a friendly visitor. We were lucky that she never lost her kind personality. She would say thank you for visiting and ask how I was. She never stopped trying to make me better. Her last words to me were “work hard!” Then she turned to my Dad and said “you, don’t work so hard.”
