We are Leaders in Asset Protection in Pennsylvania
At Keystone Elder Law P.C., our Pennsylvania Medicaid planning and asset protection lawyers are skilled, knowledgeable, and committed to protecting the rights of clients. As leaders in elder law and estate planning, we have extensive experience with both Medicaid planning and asset protection more broadly. If you have any questions about Medicaid planning and/or asset protection, we can help. Contact our Pennsylvania lawyers today for a confidential, no obligation initial consultation.
The Challenge: Long-Term Care in Pennsylvania is Extremely Expensive
Most people are stunned to find out how much it costs to stay in a nursing home. Long‑term care in Pennsylvania can quickly become a crushing financial burden. For the year of 2024, the median annual cost for a semi‑private nursing home room exceeds $140,000 in Pennsylvania. That is a figure that is in excess of the national average. For reference, that means that it costs more than $10,000 per month for a person to stay in a nursing home. Even a relatively modest period of long-term care needs can rapidly deplete a person’s life savings.
Can you just rely on Medicare? Unfortunately, the answer is generally no. Medicare typically covers only short‑term, medically necessary stays and limited home health services. In other words, it does not cover the ongoing personal care most seniors need. Without alternative funding, even a short period in a facility may exhaust a lifetime of savings. There is good news: Medicaid offers a solution. However, Medicaid is a strictly means-tested government program. To qualify for benefits for long-term care through Medicaid, a person must have a genuine financial need.
Proactive Medicaid Planning Can Make the Difference
Medicaid planning is often the only feasible way for Pennsylvania seniors to pay for long‑term care without depleting their assets. Medicaid coverage is available to those who meet strict financial and medical eligibility requirements. Without a proactive plan, reaching those thresholds will require “spending down” assets. In other words, Medicaid will require that a person spend their assets before they can qualify for benefits. A well‑crafted Medicaid plan offers a feasible workaround.
Strategies such as Medicaid‑compliant irrevocable trusts, legally timed transfers, and structured gifting can convert countable assets into exempt ones, while honoring the 5‑year look‑back rule. As long as property and assets are transferred properly into a Medicaid-complaint trust at least five years before a person actually needs long-term care, then those assets are “removed” from the estate and will not be counted. It is a great way to protect assets from long-term care risks.
- Asset Protection Tip: Trusts are one of the most effective asset protection tools. With that being said, they are by no means the only option that is available. There are other strategies that may also help people and families protect their wealth. As an example, early gifting may be an effective strategy for some people to plan for long-term care needs.
Why Trust Our Pennsylvania Medicaid Planning & Asset Protection Attorney
Aging brings a lot of inherent risks to your wealth. Indeed, even a relatively short period of long-term care needs could quickly eat away at your life savings. A proactive approach is a must. The founder of Keystone Elder Law P.C., Patrick Cawley has deep experience with Medicaid planning and asset protection. We have the expertise you and your family can rely on when it matters most. When you reach out to our office in Mechanicsburg, you will have an opportunity to consult with a Pennsylvania Medicaid planning attorney who can:
- Listen to your story and answer questions about your options;
- Help you gather, prepare, and organize supporting financial documentation; and
- Develop a comprehensive Medicaid planning and asset protection strategy.
Medicaid Planning & Asset Protection in Pennsylvania: Frequently Asked Questions (FAQs)
What is the difference between Medicare and Medicaid when it comes to long-term care?
Medicare is a federal program that helps with short-term medical needs, but it does not cover long-term nursing home care. On the other hand, Medicaid, a joint state and federal program, can pay for long-term care if you meet the financial and medical eligibility requirements. Many Pennsylvania residents rely on Medicaid for nursing home costs. Medicare provides very little coverage. For that reason, Medicaid planning is a must.
Will I have to spend all my savings before I qualify for Medicaid?
No. Not necessarily. Medicaid allows certain asset protection strategies so you don’t have to exhaust all your resources. For example, you may keep a home (with equity limits), a vehicle, and personal belongings. Planning ahead can help you preserve savings while still qualifying for care. A top-tier Pennsylvania asset protection lawyer can help.
What is the five-year Medicaid look-back period in Pennsylvania?
Similar to virtually all other U.S. states, Pennsylvania follows a five-year “look-back” rule for long-term care Medicaid eligibility. Any asset transfers made for less than fair market value within five years of applying may result in a penalty period of ineligibility. Proper advance planning is essential to avoid costly disqualification. If you take action five years before any actual long-term care need, you will be in the best position to protect your assets.
Can placing my assets into a trust help me qualify for Medicaid in Pennsylvania?
Yes. In fact, placing certain assets into an irrevocable trust may help protect them for Medicaid planning purposes. With that being said, if the trust is created within the five-year look-back period, it may still trigger a penalty. The structure and timing of the trust are critical. They should be handled by an experienced Pennsylvania elder law attorney.
Contact Our Pennsylvania Medicaid Planning Lawyer Today
At Keystone Elder Law P.C., our Pennsylvania Medicaid planning attorney is standing by, ready to protect your rights and your interests. If you have any questions about Medicaid planning strategies, we can help. Contact us today for a fully confidential, no-obligation initial consultation. We provide solutions-focused Medicaid planning and asset protection representation in Pennsylvania.
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REGISTER HERE for LONG-TERM CARE PLANNINGPower of Attorney
A Power of Attorney can be used to give another person the right to sell a car, home, or other property in the place of the maker of the Power of Attorney. A Power of Attorney might be used to allow another person to sign a contract for the maker of the Power of Attorney (the person who makes a power of attorney is called the “principal”). It can be used to give another person the authority to make health care decisions, do financial transactions, or sign legal documents that the principal cannot do for one reason or another. With few exceptions, Powers of Attorney can give others the right to do any legal acts that the makers of the Powers of Attorney could do them themselves. A General Power of Attorney gives the “power of attorney Agent” or simply “Agent” (the legal name of the person who is authorized to act for the principal) very broad powers to do almost every legal act that the principal can do. When Elder Law Attorneys draft general Powers of Attorney, they still list the types of things the Agent can do but these powers are very broad. People often do general Powers of Attorney to plan ahead for the day when they may not be able to take care of things themselves. By doing the General Power of Attorney, they designate someone who can do these things for them.
Normal Powers of Attorney terminate if and when the principal becomes incompetent. Yet many people do Powers of Attorney for the sole purpose of designating someone else to act for them if they cannot act for themselves. It is precisely when persons can no longer do for themselves that a Power of Attorney is most valuable. To remedy this inconsistency, the law created a Durable Power of Attorney that remains effective even if a person becomes incompetent. The only thing that distinguishes a Durable Power of Attorney from a regular Power of Attorney is special wording that states that the power survives the principal’s incapacity. Even a Durable Power of Attorney, however, may be terminated under certain circumstances if court proceedings are filed. Most Powers of Attorney done today are durable.
Yes. At the time the Power of Attorney is signed, the principal must be capable of understanding the document. Although a Power of Attorney is still valid if and when a person becomes incompetent, the principal must understand what he or she is signing at the moment of execution. That means a person can be suffering from dementia or Alzheimer’s Disease or be otherwise incompetent sometimes but as long as they have a lucid moment and are competent at the moment they sign the Power of Attorney, it is valid even if they do not remember signing it at a later date. At the time it is signed, the principal must know what the Power of Attorney does, whom they are giving the Power of Attorney to, and what property may be affected by the Power of Attorney.
Any competent person eighteen years of age and older can serve as an agent. Certain financial institutions can also serve. There is no course of education that agent must complete or any test that Agent must pass. Because a Power of Attorney is such a potentially powerful document, agents should be chosen for reliability and trustworthiness. In the wrong hands, a Power of Attorney can be a license to steal. It can be a big responsibility to serve as an agent.
For Medicaid
Medicare is health insurance and covers medical services such as physician appointments, therapy, blood tests, x rays, medical procedures and hospitalization. Medicare will sometime pay for rehabilitation in a long-term care facility for a period of 20 to 100 days, but not longer. In long-term care, Medicaid covers the cost of ongoing support services for daily functioning, such as room and board in a nursing home.
Medicaid is a federal program that is overseen by the Center for Medicare and Medicaid Services (CMS). In Pennsylvania, Medicaid is called Medical Assistance and is administered by the Department of Human Services (DHS).
In Pennsylvania, Medicaid funds are not available to pay for assisted living or personal care.
For Medicaid to pay for care in a nursing home, an individual recipient must be determined to need a nursing home level of care by a physician and the local Office of Aging. An individual whose income is not greater than three times the poverty level may keep up to $8,000 of total resources, but may otherwise keep only $2,400. The cash value of life insurance counts as a resource, but one car and a residential home does not count as a resource.
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At Keystone Elder Law, we believe that the physical, social, legal, and financial considerations of our clients all intertwine. We utilize an interdisciplinary approach to evaluate each area, which allows for the creation of a plan that addresses the concerns of the individual as a whole as well as the family. To this end, our model of practice includes a Care Coordinator (usually a nurse or social worker), whose expertise complements our team of attorneys.
When the road of life is smooth, decisions about legal and financial matters are easy to push aside for “a rainy day.” Planning ahead, however, will allow for more options as you view the map of where you’ve been and where you want to go. Don’t let a crisis limit your choices or derail your plans.
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