The unfortunate truth is that nursing homes can fire residents for non-payment, but they have to follow some guidelines when doing so. If a person runs out of money while in a nursing home, the facility may discharge them for non-payment. However, the person can avoid this outcome by seeking financial support. Low-income older people who, according to the evaluation, require a level of care in a nursing home are likely to be eligible for Medicaid, which can be used to cover the cost of care in a nursing home. Nursing homes don't take the assets of people who move into them.
However, nursing care can be costly and paying for the costs may require you to spend your income, take advantage of your savings and even liquidate your assets. Nursing homes will continue to house those who have run out of money if they have already started the Medicaid application process. This means that, even if Medicaid hasn't yet been approved, the resident still has the right to continue living in the nursing home. However, it's still highly recommended to plan the Medicaid application process well in advance before money runs out to avoid Medicaid transfer fines that can delay approval of benefits. This highly controlled process of “going broke” is called Medicaid spending reduction.
Cost reduction rules are complex, so it is advisable to consult a lawyer specializing in law for the elderly to plan the process in detail. If you have applied for Medicaid, but you haven't yet been approved or rejected, it means that you have a pending Medicaid plan, which means you can start receiving care right away in some nursing homes and caregivers. In fact, often, the only way for assisted living residents to quickly obtain approval for Medicaid is to transition to a state-licensed nursing home. With more than 1.4 million Americans living in nursing homes across the country, there's a good chance that at some point you'll consider receiving nursing care for yourself or a loved one.
Unlike Medicare, which only covers part of the nursing home costs of an eligible person for up to 100 days, Medicaid is a joint federal and state benefit that allows you to pay for the expenses of a nursing home when you run out of money. While what a nursing home charges depends on several factors, such as its geographic location and the complexity and quality of care, Medicaid pays for all applicable expenses. Along with nursing homes, assisted living facilities have different levels of care depending on the resident's needs. Neither the nursing home nor the government will foreclose your home to cover expenses while you are under guardianship. Many centers, including assisted living centers and nursing homes, offer this type of care to residents with dementia.
Therefore, it's not a bad idea to ask if the company that manages the assisted living facility of your choice also manages a nursing home, as this may facilitate a future transition. Seniors who currently pay out of pocket for care in a nursing home, but have less than a year of funding left, should start planning their Medicaid application as soon as possible. Nursing homes are better suited for people who can't take care of themselves and need more help with their daily activities.
