As stated in previous posts, long term care is a major part of the healthcare industry now as more people both young and old need the care and it can be very costly.  In previous posts, we’ve discussed the various types of care available, the cost around the country, and the various payment options.  In today’s post, we’ll talk specifically about Medicaid for seniors and the qualifications.  It may surprise you that Medicaid is not available to everyone, so keep reading to learn more.

Many people believe that the social welfare program, Medicaid, which is funded with government dollars will be available for them to pay for their long term care needs. Unfortunately, that is not often the case due to the strict qualifying rules that are set in place.  These qualifying rules can leave a large number of seniors caught between a rock and a hard place.  Let’s discuss the basic qualifying rules:

  1. Must be over age 65
  2. Must have an annual gross income of less than $28,188 (single) or $56,376 (married)

Must have assets less than $2,000 (single) and $3,000 (married)

There are many more details to be aware of that are too much to discuss in this one post, however, you can see more of the details here. Please note that each state has their own specific rules, so if you plan on moving out of Texas, then it’s important that you make yourself aware of that state’s specific rules.  As you may be able to see from rules number 2 and 3, also known as the Income and Asset Tests, many Lockheed Martin retirees will probably not qualify for Medicaid especially if there is a pension and a 401k.  Having a pension or a 401k also doesn’t mean that there will be enough income and assets to cover the cost of long term care.  This is where people get caught between that rock and hard place that was mentioned earlier; they have too much income and too many assets to qualify but not enough of either to pay for the care.

There are alternative ways to qualify for Medicaid when the income and asset tests are not met.  A Miller Trust can be used to help with the income to lower it and meet the Income Test and spending down the assets can help meet the Asset Test. Spending down assets is very common; however, there are many more rules to make sure are followed so as not to incur penalties that will delay the Medicaid benefit. You can find all the details that need to be known prior to a spend down here.

This post is just the tip of the iceberg when it comes to talking about Medicaid.  Whether or not Medicaid is needed or wanted will be affected by your current and future financial state.  Planning and reviewing your options are of utmost importance.  It is not something that should be left to chance.  So, take the initiative and give us a call to start your conversation. Take control of your future and call us today for a complimentary consultation to discuss your options!

For more tips like these, click here to sign up for our weekly email blog newsletter. If you would like to get better educated on Lockheed retirement strategies, click here to download our Free Report titled Retire with Confidence: The Top 4 Things You Can Do Now to Maximize your Lockheed Retirement. And, if you want to have face time with a Lockheed Retirement Specialist², you can click here to schedule an appointmentclick here to sign up for our Lockheed Retirement Workshop or click here to just give us a call (817) 210-3444.

Be sure and check back next week for more incredibly valuable information. Cheers!


Financial Planning and Investment Advisory offered by SWMG, LLC a Registered Investment Advisor.

Lockheed Martin Retirement Specialist is not an official title or professional designation nor is it conferred by Lockheed Martin on any individual or company.

Our Complementary consultation and free report are for informational purposes only and provided free without any obligation to utilize or retain our investment advisory services.

SMWG, LLC is not affiliated with or endorsed by Lockheed Martin Corporation. Our expertise comes from working with LMT employees for several years and helping them to retire with confidence.

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