MEDICAID QUALIFICATION

Medicaid Qualification in Alabama is Difficult

The Stress of trying to complete a Medicaid application during a medical crisis is off-the-charts.

Qualification is difficult and so is filling out the Medicaid application.  Over the years, we have helped many families through the Medicaid Qualification and application process. One thing has become crystal clear: planning ahead is much, much better for everyone than trying to go through the Medicaid eligibility process during an emergency.

What is Medicaid?

Medicaid, not Medicare, is the government program that pays for nursing home care.  Medicaid is a collaboration between state and federal government to provide healthcare coverage to Americans who meet certain requirements. Individual states administer the program pursuant to federal regulations. State and federal governments provide the funding for the program.

Medicaid Qualification in Alabama 

Elderly and disabled applicants who seek to qualify for Medicaid benefits to cover nursing home care must meet the following requirements:

• Your Income must not exceed $2,205 per month. The monthly income limit is adjusted every year in January, so this amount is subject to change.

• A single person cannot have must more than $2,000 in assets on the first day of the month. Typically, cash, bank accounts, cash value of life insurance, and investment income are considered ‘resources.’ Some items are not counted as resources, including: household goods and personal effects, items related to burial, one car if used by a family member, and some real property.

Special circumstances apply, especially if the person entering the nursing home is married. There are also exceptions which we can explain when we help with your Medicaid planning.

Additionally, if an individual’s monthly income exceeds the limit set by Medicaid, excess income may be paid into a Miller Trust. Also known as a Qualified Income Trust or Medicaid Income Trust, money placed in the trust can be used by a trustee to pay certain expenses like:

• Your share of the nursing home costs as determined by Medicaid;
• Items that meet personal needs; and
• A spouse’s monthly maintenance.

Medicare

Many people confuse Medicaid with Medicare.  Medicare does not pay for day-to-day skilled care on a long term care basis. However, Medicare may pay for medical care at a long-term care hospital, a skilled nursing facility, a hospice, or at-home services if certain criteria are met.  Medicare benefits will pay for care in a skilled nursing facility for a maximum of 100 days so long as the patient is rehabbing and improving.  Medicare pays in full for 20 days and pays days 21-100 after the parient pays a co-pay of $175 a day or so.  

As with any government program, Medicare requires forms and supporting documents. Limitations apply, so not everyone will be eligible for Medicare.

While they often get confused, Medicare and Medicaid are two vastly different programs that have different qualifications and pay for different levels of care.

We Can Help with Medicaid Qualification Planning.

When you need an advocate who understands the Medicaid process, contact Bill Miller at Miller Estate and Elder Law.  Call us at 256-472-1900 or use our Contact Form to let us know you’re ready to get started.