MAINECARE MYTHS - Busted!

By The Elder Law Team at Lanman Rayne Nelson Reade, (207) 671-5454

MaineCare is a benefits program that helps pay for long term care. Long term care involves a range of services and supports to help people who can no longer take care of themselves independently. It can range from in home care to care in assisted living facilities and nursing homes. There are many ways to pay for long term care. Some people pay out-of-pocket. Some people have long term care insurance through a job or that they purchased independently. Some Veterans have long term care benefits from the VA. For many Mainers, MaineCare steps in to help. MaineCare and Medicare sound alike, but are not the same program! Medicare is the federal health insurance program for individuals 65 and over. MaineCare is Maine’s Medicaid program which often covers things that Medicare does not—like long term care.  MaineCare is a really good option for many people, but it is often misunderstood. We at Lanman Rayne Nelson Reade want to address some of the MaineCare myths we see most often and set the record straight to help you make smart choices about your options.

MYTH 1:  MaineCare is only for people with very little money.

Fact: MaineCare helps a wide variety of Mainers with their long term care needs.

Although MaineCare has income and asset limits, the MaineCare eligibility rules provide ample opportunities for redistributing an applicant’s assets to help them qualify for benefits while at the same time preserving some or all of those assets. If you think that you have too much money to quality for MaineCare benefits, but not enough money to pay for care out-of-pocket, there are things attorneys can do to help, regardless of whether you or your loved one needs MaineCare now or whether you are just planning for the future.

MYTH 2:  Married people should get divorced so they can qualify for MaineCare.

Fact: MaineCare has some benefits that only apply to married couples.

You may be surprised to find that being married can be beneficial not only for preserving your assets but for helping your partner qualify – while staying married! For example, transfers of money and property between spouses can be protected and a qualified and experienced attorney can help you manage this to make sure both of you have the care and the money you need.

MYTH 3:  I’m afraid to get MaineCare because the state will take my home.

Fact: The state cannot take your home while you or your spouse are still alive.

Aside from the fact that the state cannot take your home while you or your spouse are still alive, there are legal options to protect your home’s value even after you pass away, but these protections require proper planning and documentation. Discussing this with a qualified and experienced attorney is your best way to make sure you’re protecting yourself and your loved ones as you explore your options with MaineCare.

MYTH 4:  You should give your money and property to your children now so you can qualify for MaineCare.

Fact: Giving money and property away can actually count against you when you apply for MaineCare.

When you apply for MaineCare, they will “look back” on anything you’ve given way during that time. When you give things way, those gifts may be a disqualifying transfer and the penalty will affect your ability to qualify for MaineCare.  However, there are ways to reduce any penalties you may incur. Additionally, if you transfer money and property now, you and your family might miss out on significant tax benefits Always talk with a qualified and experienced attorney before starting to give significant gifts.

MYTH 5:  Yes, but I can still give $19,000 a year to each of my children.

Fact: The $19,000 limit applies to taxable estates, which is a separate issue from MaineCare eligibility.

Although the IRS has a threshold of $19,000 a year to any person without needing to report the gift, the MaineCare threshold for reportable gifts is much lower ($500 in any quarter).  Although not all gifts to children will count against you, especially if they are disabled or have special needs, it is always important to talk to a qualified and experienced attorney to make sure you are making choice that help you towards your goals.

In conclusion, MaineCare has options that allow for both advanced planning and crisis planning. Each of the tools MaineCare allows must be mindfully implemented and documented to make sure they help you achieve your goals for long term care. While this article is a brief introduction, think of it as a jumping off point for when you go talk to an experienced and qualified attorney who can help you make a comprehensive plan.