Part 2: Prepare for the Harsh Realities of the One Big Beautiful Bill (OBBB)
If you are like many of our clients, you want and need to protect your Medicaid benefits. Ensuring that protection takes knowledge and proactivity when laws change.
The One Big Beautiful Bill (OBBB) introduces sweeping changes to Medicaid. Many provisions roll out over the next 6 to 18 months. Some are not taking effect until 2028. However, many of the early changes require significantly more paperwork, scrutiny, and proactive planning from Medicaid recipients. These increased requirements could make it easier for some individuals to lose coverage.
Now is the time to get informed, stay organized, and take strategic steps to protect your Medicaid benefits.
Major Cuts to Long-Term Care Funding
For many older adults, remaining in their homes surrounded by family is the preferred option over institutional care. Unfortunately, OBBB includes Medicaid funding cuts that will reduce support for nursing homes and Home and Community-Based Services (HCBS)—critical programs that help aging adults stay at home. Family caregivers, many of whom receive compensation through Medicaid’s HCBS programs, may also be affected, though the full impact is yet to be seen.
New Home Value Limits Could Disqualify You from Medicaid
Beginning January 1, 2028, if your home is valued over $1 million, you may no longer qualify for Medicaid to help cover nursing home care. With property values rising across the country, even modest homes purchased years ago may now exceed this threshold. Importantly, the rule does not adjust for inflation, meaning more families will be affected over time.
Twice-Yearly Medicaid Reviews Increase Risk of Losing Coverage
Medicaid eligibility reviews—or “redeterminations”—will now occur every six months instead of annually. This means more frequent paperwork, documentation, and a higher risk of mistakes or missed deadlines that could lead to an unexpected loss of coverage.
Reduced Retroactive Coverage Leaves Families Vulnerable
Previously, Medicaid could cover medical costs up to 90 days before a benefits application was submitted. This safety net has now been shortened to just 60 days. This change can create serious financial risks for families dealing with sudden nursing home admissions or unexpected health crises, especially when gathering the required documents takes time.
Proactive Planning to Protect Your Medicaid Benefits Is More Critical Than Ever
The changes outlined here are only the beginning. In my next two posts, I’ll dive deeper into other ways OBBB will impact families—including changes to nursing home staffing standards.
What can you do now?
- Get your home appraised to understand if you may be affected by the $1 million cap.
- Explore trust options and other asset protection strategies before the 2028 deadline.
- Start your estate planning or revisit your current plan with these upcoming changes in mind—especially if you’re caring for aging parents or loved ones with disabilities.
Stay informed. Stay ahead. And don’t wait to protect your Medicaid benefits until it’s too late.
For personalized guidance, call my office at (470) 235-7868 to schedule a consultation and start building a plan that protects your assets and benefits under the new rules.
Looking to find an experienced estate lawyer in the Georgia area who is skilled in asset protection and estate plan preparation? Shannon Pawley is an attorney in Georgia with expertise in estate planning and asset protection. Shannon can provide assistance with creating an estate plan to include making a will and how to establish a trust properly. If you have questions about asset protection or questions about making an estate plan, reach out to Shannon and she will be glad to help answer all the estate planning questions you might have!
