Not too long ago, there was an article published in the New York Times concerning Medicaid and the ethics of adjusting your income in order to qualify for it. Medicaid is at the center of all of the health care reform talk that is going on in Washington, D.C. right now. And while it’s unclear just what will happen, whatever does, Medicaid will likely somehow be involved. That means this ethical question is going to continue to be a relevant one in most everyone’s lives.
Medicaid was designed as a safety net to help those that are unable to afford their health insurance premiums. And during your retirement years, you are especially prone to a loss of income. You are most likely not working, and as we age, health issues become more prevalent. This is the time when a safety net is going to be needed the most.
As you might know, Medicaid, or Medi-Cal here in California, is a public form of health insurance geared toward individuals with little or no income and assets. The good news about Medicaid is that it will pay for a long term nursing home stay. Medicare, the other widely used form of public health insurance, does not cover this. The problem is that senior care of any sort is extremely expensive. The prospect of having insurance cover care is very attractive, and for many that means shuffling money around in a legal way so that that individual qualifies for Medicaid.
Just because something is legal, however, does not necessarily mean that it is ethical. And many people have a legitimate issue with doing this, and with other people doing it. For many, it seems underhanded and shady.
But is it really?
If this kind of action was not okay, it would certainly be mentioned in the legislation somehow. If the government did not believe that this type of action was acceptable, it would clearly be prohibited. That means that although it might seem like a sketchy action, according to the law, it currently is acceptable.
Honestly, this comes down to a personal choice. Being legal doesn’t mean that it’s okay for everyone. There are a lot of other actions that can be pointed out as an example of this. What it comes down to is whether you and your family are comfortable with these actions. If a spend down is something that will benefit a loved one, then perhaps it is something that needs to be considered. The nursing home setting isn’t right for everyone, but for some, it is. In these instances, Medicaid may be of help.
If you have further questions, it’s important that you speak to a professional in this field. This is just a very brief introduction to a very tricky portion of the law.
And if you have questions about a spend down, get in touch with an attorney that specializes in this portion of the law. This is a complicated area, and it’s important that the procedures be done correctly in order to safeguard your loved one in need, yourself, and the rest of your family.
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