What to Know About Long-Term Care Planning in Florida and Medicaid Eligibility
The cost of nursing home care is extreme. In Florida, a year in a nursing home can run well over $100,000 (Florida Health Care Association). Medicaid can help to provide financial support, but there are strict eligibility requirements. Without proper planning, you or your loved one could be forced to spend down savings far more quickly than expected. Within this article, our St. Petersburg long-term care planning attorney provides a guide to Medicaid eligibility in Florida.
The Big Point to Know: Medicaid Covers Nursing Home Care, but Not Automatically
Medicaid, not Medicare, is the government program that provides coverage for nursing homes and other long-term care costs. The good news is that Florida Medicaid can step up and offer essential coverage for long-term care services. The challenge is that the eligibility rules are strict. To qualify for Institutional Care Program (ICP) benefits or Home and Community-Based Services (HCBS), applicants must meet income and asset limits set by the Florida Department of Children and Families (DCF). In 2025, the asset limit for an individual applicant is $2,000 in countable resources. However, there are certain exclusions for homestead property and some personal belongings.
You Can Plan Ahead With a Medicaid Trust (Five Year Look Back Period)
If you take a proactive approach to long-term care planning, there are a lot of options available to protect your assets and preserve your eligibility for Medicaid. Florida enforces a five-year “look-back” period for Medicaid eligibility consistent with federal law (42 U.S.C. § 1396p(c)). During this time, any transfers of assets for less than fair market value are carefully reviewed to prevent applicants from artificially impoverishing themselves to qualify for benefits. If a disqualifying transfer is found, Medicaid will impose a penalty period during which benefits are withheld. In other words, Medicaid can “undo” the transaction. However, if you make a transfer of assets to a trust at least five years before you apply for Medicaid, your assets will be effectively protected.
A Trust is a Great Asset Protection Tool, But Other Options are Available as Well
Other strategies include converting countable assets into exempt ones. Some of the potential ways to spend in an efficient manner for Medicaid purposes include things like home improvements to a primary residence, purchasing a Medicaid-compliant annuity, or allocating funds toward prepaid burial arrangements. Beyond that, spousal impoverishment protections under federal law (42 U.S.C. § 1396r-5) allows the “community spouse” to retain a certain amount of assets and income.
Get Help From a Top St. Petersburg Long-Term Care Planning Attorney Today
At Fisher & Wilsey, P.A., our St. Petersburg estate planning attorney has the knowledge, skills, and professional experience that you can trust. Have questions about Medicaid and long-term care coverage in Florida? We can help. Contact us today for your completely confidential, no obligation case review. With an office in St. Petersburg, we serve people and families throughout the region.
Source:
fhca.org/media_center/long_term_health_care_facts
