A reduction in Medicaid could have an impact on long-term care in a nursing home.
Medicaid was set up to provide health care for poor people, including the elderly. Most of the people in nursing homes now receive Medicaid to pay for their care, according to The New York Times article titled “How the Medicaid Debate Affects Long-Term Care Insurance Decisions.”
With potential cuts possible by Congress in the future, Medicaid reductions have implications for many of the people now nearing retirement age.
Estimates are that approximately half of the people turning 65 today, will eventually need nursing home care. Many of them can expect to need it for five years or more.
If Medicaid will not be available to pay for that care in the future, then people need to make plans for how they will pay for their care.
There are options available, such as self-funding for those who can afford it and long-term care insurance, which is very expensive.
An elder law attorney or estate planning attorney can advise you on any questions you have on options for nursing home care.