Many senior citizens will ultimately need medical, nursing, or other types of care and assistance as they age. Paying for it can be a challenge. Nursing home care, which is the most expensive can cost up to $130,000 per year in New Jersey. Other types of care, such as household help, home health aides, and subaccute care can be less expensive but still a substantial cost.

Very often, a senior citizen in need of care will have out-of-pocket costs for care. Some have long term care insurance. However, many people will run out of resources and need to turn to the Medicaid program.

Medicaid is a health insurance program for need individuals. It is a government program that is a creature of both state and federal government.

Obtaining Medicaid coverage can be a complex and difficult process. In order to qualify, a senior citizen must prove that they need assistance with at least three activities of daily iving. In addition, they must meet the resource requirements, which are, in brief, to have only $2,000 in countable resources.

It is important to understand that Medicaid is a program for needy individuals, not regular health insurance for people who have substantial assets and income. Analyzing eligibility is a very important step toward obtaining Medicaid, and includes a mix of assets and income, some of which can be countable or excluded, depending on the circumstance. Of course, even if an individual meets the financial criteria, they must also meet the medical criteria.

Medicaid planning is a type of elder care planning that considers how a senior citizen plans to pay for long term care, should the need arise. Since the Medicaid program has very strict requirements, and many people possess income and assets that could affect eligibility, it can be a wise investment to attempt to preserve assets while creating a usable plan for the future.

In short, yes. The Medicaid application process is difficult and social services will require extensive documentation of assets and income. Sometimes an applicant is denied Medicaid and further steps may need to be taken, including appealing the denial, or reapplying.