Planning Ahead: Medicaid and Long-Term Care Considerations in New York

As New York’s population continues to age, long-term care has become one of the most significant financial challenges for seniors and their families. Whether it’s home care, assisted living, or nursing home placement, the cost of care can quickly deplete a lifetime of savings. Many families turn to Medicaid to cover these expenses—but eligibility requires careful planning, often years in advance.

Why Medicaid Planning Matters

Medicare only covers limited short-term care. In contrast, Medicaid can cover ongoing long-term care costs—but only if the applicant meets strict income and asset requirements. Without proactive planning, individuals may find themselves ineligible at the very time they need help most.

Understanding the Rules in New York

To qualify for long-term care Medicaid in New York, applicants must meet financial eligibility limits:

• Income limit: Approximately $1,800/month for a single applicant.

• Asset limit: Generally $32,000 for a single person; slightly higher for couples.

• Primary residence: A home may be exempt if the applicant (or a spouse) lives in it, but it could later be subject to estate recovery.

New York also imposes a five-year look-back period on nursing home Medicaid. This means that any gifts or asset transfers made within five years of applying may result in a penalty period during which Medicaid benefits will not be available.

Tools for Protecting Assets

Fortunately, there are legal strategies available to protect assets while preserving Medicaid eligibility. Some of the most common tools include:

• Medicaid Asset Protection Trusts (MAPTs): Irrevocable trusts that allow individuals to transfer assets out of their name while starting the five-year look-back clock.

• Spousal refusal and spousal allowances: New York law allows the “community spouse” to retain a certain level of income and assets without affecting the applicant’s eligibility.

• Pooled income trusts: These allow excess income to be set aside for the benefit of the Medicaid applicant while still qualifying for home care services.

These strategies must be implemented carefully and ideally well before long-term care becomes necessary.

Planning Ahead Is Key

The best time to start Medicaid planning is before a crisis occurs. By working with an attorney experienced in elder law and Medicaid planning, you can:

• Protect your family home and savings

• Avoid unnecessary spend-downs or penalties

• Ensure access to quality care, whether at home or in a facility

Even if a loved one already needs care, emergency planning options may still be available.

Contact The Law Office of Jin-Wook Kim, P.C. to learn how we can help you or your loved one plan for long-term care while protecting what matters most. We serve families across Long Island and the greater New York area with trusted guidance in Medicaid planning and elder law.