Navigating the process of qualifying, applying for, and receiving Medicaid can be tricky. Unfortunately, many seniors aren’t educated on the best ways to protect their existing assets from being drained on health care bills due to governmental red tape. Here’s a brief explanation of how Medicaid works, how it impacts senior finances, and why proactive funeral planning can help protect your savings.

Medicaid & Funeral Planning

What is Medicaid?

Medicaid is a governmental assistance program, funded at the state and federal level, that helps connect people in need with medical care. The program is particularly important for seniors, who can no longer work but have a steady increase of doctor visits, lab work, and medications to pay for.

How does the program impact seniors financially?

To receive Medicaid, seniors age 65 and over must first qualify for the program based on their existing income and assets. Unfortunately, if the total monetary value is deemed “too high” by the government, seniors have to drain their savings on health care bills until their assets are low enough to qualify for government assistance.

Where does funeral planning come in?

Luckily, there is a way seniors can protect themselves (and their bank accounts) from being depleted, while still benefiting from Medicaid. This is achieved by “spending down” and investing your money into several government-approved exempt assets, which won’t be included in your countable ones.

One of these approved exemptions is an extensive burial contract that covers everything involved in funeral planning for both you and your partner. In addition to cremation or burial costs, the full-service contract should also include line items for everything from memorial flowers and clothing to the services of a funeral director and their staff. Keep in mind that this contract may not be revocable. If it can be canceled, the government views it as a non-exempt asset and, thus, will include it in your total assets.

Looking for help pre-planning your funeral services? Dennis George Funeral Home in Cleves, OH, employs a compassionate team with over two decades of experience in funeral planning. Serving families all across western Cincinnati, they’re dedicated to honoring the departed with thoughtful and meaningful funeral arrangements and memorial services. This trusted funeral home can also assist with everything from cremation services to deciding on urns or caskets. To speak with their director about funeral planning, give Dennis George Funeral Home a call today at (513) 941-6700 or complete their convenient online contact form.