Medicare
Medicare, the federal health insurance program for people age 65 or older, and certain disabled individuals under the age of 65, is not designed to cover long-term care expenses. Medicare will cover short-term nursing home costs if the individual qualifies. To qualify, you must:

• Spend at least three days in the hospital.
• Be in a Medicare-certified skilled nursing facility.
• Be receiving skilled care.

If you qualify, Medicare may cover, for each benefit period:

• All approved charges for the first 20 days.
• A portion of the costs for the next 80 days. Your co-payment is required.
• Nothing after 100 days. Those costs become your responsibility.

Medicare may also provide benefits for home health care if you meet these four conditions:

• Your doctor must decide that you need medical care in your home, and make a plan for your care at home; and
• You must need at least one of the following: intermittent (and not full time) skilled nursing care, or physical therapy or speech language pathology services or continue to need occupational therapy; and
• You must be homebound. This means that you are normally unable to leave home. Being homebound means that leaving home is a major effort. When you leave home, it must be infrequent, for a short time, or to get medical care, or to attend religious services; and
• The home health agency caring for you must be approved by the Medicare program.

You can purchase a Medicare supplement insurance policy to cover Medicare's co-payments and deductibles.

For more information about Medicare, visit www.medicare.gov.

Medicaid
Medicaid is a joint federal and state health program designed to help provide payment for medical and health services for low-income individuals who meet certain financial criteria. It is one of the largest payers of long-term care costs today. Unfortunately, that means many people may have gone through the asset liquidation process known as "spend down" before qualifying. It is only after liquidating assets and reducing income to allowable limits that Medicaid provides help to individuals who need long-term care.

Please be aware that the federal government has passed legislation to discourage asset transfers to qualify for Medicaid, including look-back periods and penalty periods. Transferring assets to qualify for Medicaid may result in legal and financial consequences.

The eligibility rules for Medicaid are complex and they are different from state to state. Consult an elder law attorney or your local Department of Health and Human Services or Department of Social Services for specific information and advice.

For more information about Medicaid, visit www.cms.gov.