What is Medicare Planning?
Medicare is a federal health care plan for seniors. Individuals become eligible to enroll in Medicare when they reach 65 years of age. Medicare is also available for individuals who can no longer work because of a disability. Unlike Medicaid, Medicare is not a needs-based health care plan. However, that does not mean you should not include Medicare planning when discussing your estate planning goals with our Maryland estate planning attorney.
Understanding Medicare and How it Impacts Your Estate Plan
Medicare has four parts that address different health care needs:
Medicare Part A covers home health care, hospitalization, and 100 days of nursing home care. For terminally ill patients, Medicare also covers hospice care. There are deductibles for hospital care, and there may be cost-sharing expenses for care after a certain number of days.
Medicare Part B covers the cost of doctor’s visits, some preventative services, home health care, and durable medical equipment. Medicare Part B generally pays 80% of the covered expenses, but not all expenses are covered. The patient is responsible for the remaining 20% of the charges.
Medicare Part C or the Medicare Advantage Program allows for health care through private plans. These plans may pay for services not covered by Medicare, but the plans may restrict the choice of providers.
Medicare Part D is an optional prescription drug plan. The coverage and cost vary by plan and provider.
Some individuals purchase Medigap or Medicare Supplemental Policies to assist in paying for deductibles and co-payments.
How Can an Estate Planning Attorney Help with Medicare Planning?
The Medicare program can be difficult to understand and navigate. When a person makes a mistake, it could cause denials of benefits and costly appeals. Being prepared for your retirement is the best way to ensure that you have the necessary healthcare resources during your senior years.
Medicare does not pay for long-term nursing home care or assisted living care. Medicare only pays for short-term health care needs. Therefore, you need to consider what you will do if you require long-term nursing care.
Nursing home care can cost an average of $7,698 per month for a private room. For private facilities that provide additional services, the fee could be over $10,000 a month. Unless you have substantial assets to pay for nursing care or a long-term health care insurance policy that covers the care you desire, you may need to turn to Medicaid.
Medicaid is a needs-based state-administered health care plan. You must have minimum income and resources to qualify for Medicaid benefits. Medicaid also may place a lien on your estate to recoup the costs paid for your care.
An estate planning lawyer works with individuals and families to structure their estate so they can protect their assets while qualifying for Medicaid benefits. Several strategies can protect assets from Medicaid liens, such as revocable and irrevocable trusts.
For a person with special needs, Medicaid planning is essential to ensure continued eligibility should the person inherit assets from another person’s estate. Regardless of your situation or finances, planning for long-term care, either Medicare or Medicaid, is essential in estate planning.
Contact a Maryland Estate Planning Attorney for More Information
Providing for your health care during retirement years can be challenging. Medicare planning allows you to protect your best interests by ensuring you have access to the health care you need after retirement or should you become incapacitated.
Contact Steve Thienel to schedule a time to speak with a Maryland estate planning attorney. Let us help you take care of your future needs by developing an estate plan today.
Related
Steve Thienel, Esq.
Founder, Thienel Law, PLLC · Alexandria, Virginia
Steve Thienel is a business, tax, and estate planning attorney who represents clients throughout Maryland, Virginia, and Washington, D.C. He holds a J.D. from the University of Maryland and a Master of Laws (LL.M.) in Taxation from the University of Baltimore. Before practicing law full-time, Steve spent 24 years in senior leadership at CSX Corporation and served as adjunct faculty at Johns Hopkins University's MBA program for a decade, where he headed the economics department. He earned his M.A. in Economics from Virginia Tech, studying under Nobel Laureate James Buchanan.
Admitted to the Maryland, Virginia, and D.C. Bars · U.S. District Courts for the District of Columbia and District of Maryland
