Medicaid is a federal program funded and administered in conjunction with the states. Medicaid is a state administered program and each state sets its own guidelines regarding eligibility and services. It's purpose is to aid those who are already poor or become poor in the course of paying for their care. Roughly 40% of all long term care nursing home and home health care costs are paid by Medicaid.

Medicaid is the largest source of funding for medical and health-related services for people with limited income. Among the groups of people served by Medicaid are eligible low-income parents, children, seniors, and people with disabilities.

Remember each state has different guidlines regarding Medicaid. You will need to contact your state Medicaid program for information about your specific state's guidlines.

Medicaid Eligibility

Medicaid policies for eligibility, services, and payment are complex and vary considerably, even among states of similar size or geographic proximity. A person who is eligible for Medicaid in one state may not be eligible in another state, and the services provided by one state may differ considerably in amount, duration, or scope from services provided in a similar or neighboring State. In addition, state legislatures may change Medicaid eligibility, services, and/or reimbursement during the year.

Although you may qualify for and receive coverage from both Medicare and Medicaid, there are separate eligibility requirements for each program: Being eligible for one program does not necessarily mean you are eligible for the other. Also, Medicaid pays for some services for which Medicare does not. If you are eligible for Medicaid, Medicaid can pay Medicare deductibles and the Medicare premium.

In order to qualify for Medicaid, you have to be in a Medicaid approved facility under a physician's orders, and your nursing home care must exceed your income and assets. All Mediciad programs have limits on income and assets and vary by state.

Medicaid will pay for nursing facility services and home health care if an individual meets the criteria, however they are not required to provide the full range of long term care services that are available today. In addition, not all facilities accept Medicaid or they may only have a limited number of Medicaid beds available.

Transferring Assets To Qualify For Medicaid

Under current regulations, any assets given away in the last three years are looked at as countable assets. For trusts, the look back period is five years.