Investment Advisory Services offered through Claraphi Advisory Network, LLC

Life, Health, and Annuity licensed in FL, AL, MS, GA, SC, NC, and MD

Medicare Rx / Doctor Form

References made, and discussions of various investment solutions or offerings are for informational purposes only. Such investments may not be suitable or appropriate for all investors. Individual investment strategies and solutions will be based on individual discussions with your advisory representative.

 

Financial and Insurance Services maintains a principal place of business in the State of Florida. Advisors for Financial and Insurance Services may transact business only in States in which they are registered, or in which they are excluded or exempted from registration. The Advisors for Financial and Insurance Services must also be registered or exempted or excluded from registration in any state in which they follow up on individualized responses to persons in that State that involve either the effecting or the attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation.

 

Important Disclosures

The information in this website is based on data gathered from what we believe to be reliable sources. Information throughout this site, whether stock quotes or any other statement or statements regarding market or other financial information is not guaranteed for timeliness or accuracy and is not intended as the primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. The identification of specific securities and model portfolios is made on the assumption that the investor would participate in the investment or portfolio on a long-term basis and only after consulting with their investment advisory representative to determine their individual needs, financial position, and tolerance for risk among other things. With respect to any such identification, there can be no assurance that fund or model portfolio will in fact perform in the manner suggested. All references that might be made to an investment or portfolio’s performance are based on historical data and one should not assume that this performance will continue in the future. Past performance is not indicative of future results. In some cases, our recommendations may include commission based insurance products. Such products will only be offered through an appropriately registered insurance broker. Claraphi Advisory Network does not offer insurance products.

 

Newsletter/Article Disclaimer

Our website may contain previous newsletters or articles where specific information may be dated and may no longer reflect the views, opinions and recommendations of Financial & Insurance Services. No client or prospective client should assume that any such discussion serves as a substitute for, or in place of, personalized advice from Financial & Insurance Services.

 

Video Disclosure

Any videos provided by Financial & Insurance Services  are for informational purposes only. Investing involves the risk of loss and investors should be prepared to bear potential losses. No portion of videos presented is to be construed as a solicitation to buy or sell a security or the provision of personalized investment, tax or legal advice. Certain information contained in this presentation is derived from sources that Financial & Insurance Services believes to be reliable; however, the Firm does not guarantee the accuracy or timeliness of such information and assumes no liability for any resulting damages.

 

Links to Other Websites

This site may provide links to other websites and resources. Financial & Insurance Services  has no control over such websites and resources, is not responsible for their availability and does not endorse and is not responsible or liable for any content, advertising, products and other materials on or available from them. Financial & Insurance Services shall not be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused with use of such sites or resources. Your use of such sites or resources shall be subject to the terms and conditions set forth by them. All such information is provided solely for convenience and information purposes.

Test #1: The Medical Test - also known as The "CARES" Assessment

Eligibility for Medicaid's Institutional Care Program (ICP) depends first upon whether or not the applying person requires the appropriate "level of care."  In other words, the applying person must be "medically eligible."

The Comprehensive Assessment, Review, and Evaluation for Long Term Care Services (CARES) is Florida's Long Term Care preadmission screening program for applicants for skilled nursing facility placement.  The Assessment is done on-site and is typically done by a Registered Nurse and a Social Worker, and is administered by the Department of Elder Affairs.

The Assessment seeks to identify and establish the applicant's Level of Care (LOC).

If a person meets the LOC requirement, then two financial tests are applied: The Income Test and The Asset Test.

Test #2: The Income Test - based on Florida's Medicaid ICP Rules

It is very important to point out and to remember at all times when planning for a married couple that each spouse's income is looked at separately and marital assets are looked at jointly, regardless of how these assets are titled.

Florida is an "Income Cap" state.  This means that if a person's gross income is over $2,313 per month, then that person is ineligible for Medicaid ICP Benefits.  The Medicaid Agency only looks at the applicant's income, not the applicant's spouse's income, if married.  In other words, income is looked at separately.

Note that it is the GROSS income that is considered.  Therefore, the Medicaid Agency will require that Medicare Part B premiums, insurance premiums, tax deductions, and other deductions be added back in.

In the event the applying person's income exceeds the income cap amount per month, then a Qualified Income Trust must be established in order to handle the excess income above the income cap, thereby allowing the applicant to pass the income test.

Test #3: The Asset Test - based on Florida's Medicaid ICP Rules

It is very important to point out and to remember at all times when planning for a married couple that each spouse's income is looked at separately and marital assets are looked at jointly, regardless of how these assets are titled.

The Medicaid applicant, whether single or married, is not allowed to have more than $2,000 of non-exempt assets in their name.  If the Medicaid applicant is married, then Medicaid allows the Community Spouse (the spouse who is still living in the community and not in the Nursing Home) to retain a "Community Spouse Resource Allowance" (CSRA) of up to $126,420.

Proper Titling of the assets is crucial to a Medicaid Spend-Down Avoidance Plan.  Unfortunately, all too often improper transferring of assets in the hope of properly avoiding an unnecessary spend-down occurs.  However, with the proper tools, much or all of your hard-earned assets may be legally protected and preserved for you and your family's continued benefit.

For example, one important aspect of Medicaid Spend Down Avoidance Planning is: What happens to the exempt assets and/or the CSRA (Community Spouse Resource Allowance) if the Community Spouse passes away first or if the Community Spouse needs to enter a nursing home after having the Nursing Home Spouse approved for Medicaid ICP Benefits???

Surprisingly, many people believe that the spouse who is in the Nursing Home will pass away first or that the Community Spouse will never need Long Term Care.  It does not always happen this way.  If the Community Spouse passes away first - or ends up needing Nursing Home Care themselves - then the CSRA and Exempt Assets may be completely lost without proper planning at the proper time.

CSRA and Exempt Assets may be completely lost without proper planning at the proper time.