Wes Coulson discusses the allowance for those who are on Medicaid. Medicaid was passed into law in 1965, and the allowance for Medicaid was $30 a month. Although prices for everything have gone up since 1965, the Medicaid allowance is still $30 a month. Elder law planning can help nursing home residents put aside money so they aren’t forced to live on $30 a month.
Hi, this is Wes Coulson and this is your Elder Law Minute. Medicaid was passed into law by Congress back in 1965 when Lyndon Johnson was the President. Back then, gas cost about thirty cents a gallon, and you could get a candy bar at the confectionary for a nickel. Nowadays, as we all unfortunately know, gas is over three dollars a gallon, and if you want to get that candy bar you’re probably going to pay more than a dollar at the convenience store.
When they set up Medicaid, they decided that $30 a month was a reasonable amount for a nursing home resident to live on. But fast forward to 2012, and the allowance is still at thirty dollars a month. Unfortunately, that’s just not enough for anyone, even a nursing home resident, to live on. When we do planning for someone who is in a nursing home, one of our main goals in establishing their eligibility for Medicaid is to set aside some funds so that we never have anyone who has to live on a meager $30 a month. Thanks.