Part 3: The OBBBA Makes Medicaid Planning More Important Than Ever

Medicaid planning is an important part of planning for our elder years. The One Big Beautiful Bill Act that just passed makes that even clearer.

Just like with estate planning, most people don’t tend to think about Medicaid planning until the need arises. For most, and this applies to both estate and Medicaid planning, that need typically comes with age, illness, or accidents.

If you’ve not spent any time thinking about Medicaid planning, now is a good time to get started.

Congress just passed a new law that changes how Medicaid works. It’s called the One Big Beautiful Bill Act (OBBB) and it’s going to affect those who are currently Medicaid recipients. Likewise, it will impact those who may need it in the future.  As we all know from the experiences of the not-too-distant past with COVID-19, the need for Medicaid can arise without warning.

Unless you or a loved one have disabilities or live below the poverty line, most Americans think of Medicaid like a safety net.

For instance, when families can’t afford to pay for nursing home care (which can cost $8,000-$15,000 per month), Medicaid steps in to help. But – and this is a very big but – you typically can’t have more than $2,000 in countable assets to qualify for Medicaid.

Prior to the passing of the OBBB, those families who planned before the need arose, took advantage of “gift strategies.” However the new law gives states less federal money. Thus, each state will be looking more closely at any money or property you give to family members. Therefore, the same gift strategies that worked before may not work now.

With the OBBB in place, I now propose that you think of estate planning as synonymous with Medicaid planning.

I also propose everyone consider it essential. Estate/Medicaid planning is best begun long before the need for Medicaid arises. There are smart strategies you can use to protect some of your life savings while still getting help when you need expensive long-term care. This kind of planning often includes the use of irrevocable trusts, where you give up control of assets, but they are protected; asset protection trusts, which are specifically designed to shield money from nursing home costs; and for those who have loved ones with disabilities, supplemental needs trusts.

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.

Stay informed. Stay ahead. And don’t wait until it’s too late.

If you missed the first 2 installments of my 4-part series, you could read them now:

The One Big Beautiful Bill and Medicaid: Part One, and
Part 2: Prepare for the Harsh Realities of the One Big Beautiful Bill (OBBB)

   

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!