Medicare vs. Medicaid in Connecticut: What It Means for Your Estate Plan
At Harper Law, we often talk with clients who feel overwhelmed by the complexity of estate planning, and healthcare is usually at the center of it.
If you're unsure how Medicare and Medicaid factor into your estate plan, you're not alone. These two programs serve different purposes, but both can significantly impact your financial future, especially when long-term care becomes a reality.
Let’s take a closer look at how they work and why planning ahead is so important.
What Medicare Covers and What It Doesn’t
Medicare is a federal program that provides health insurance for individuals over age 65 or those with qualifying disabilities. It generally covers:
Hospital stays
Doctor visits
Lab tests and diagnostics
Short-term rehabilitation
But here’s what it doesn’t cover:
Long-term custodial care in a nursing home or assisted living facility.
This is a critical gap. In Connecticut, the average cost of a private nursing home room exceeds $150,000 per year. Without the right plan in place, families may have to spend savings or sell property just to cover these expenses.
How Medicaid Works in Connecticut
Unlike Medicare, Medicaid is a state and federally funded program that can cover long-term care if you meet strict eligibility requirements.
For unmarried individuals in Connecticut, that usually means:
Less than $2,000 in countable assets
Monthly income below the state threshold
No disqualifying transfers within the five-year look-back period
Married couples may benefit from spousal protection rules, but the qualifications are still complex. Failing to meet them often means paying out of pocket until eligibility is met, which can put your home and savings at risk.
Why This Matters to Your Estate Plan
Many families assume their assets will automatically pass to loved ones, but relying on Medicare alone or waiting too long to plan for Medicaid can expose your estate to:
Asset spend-down: You may need to use your savings or sell your home to pay for care.
Estate recovery: After your passing, the state may seek repayment from your probate estate.
The right plan can help you avoid these outcomes and preserve your legacy.
How We Help Clients Plan Ahead
At Harper Law, we help clients throughout Connecticut develop estate plans that include healthcare and long-term care considerations. Strategies we may explore together include:
Medicaid Asset Protection Trusts (MAPTs): These irrevocable trusts can shield your home and savings when set up at least five years before applying for Medicaid.
Gifting Strategies: Timely gifts to family or charitable causes may help reduce countable assets.
Long-Term Care Insurance: This can help cover costs during the five-year look-back period and reduce the financial burden on your family.
Beneficiary Designations: Keeping accounts like life insurance and retirement funds outside probate can help protect them from estate recovery.
Updated Powers of Attorney and Advance Directives: These ensure someone you trust can step in if you're unable to make decisions.
Your Estate Plan Should Grow With You
As your life changes, your estate plan should too. We recommend reviewing your plan every three to five years or after major life events such as marriage, retirement, or purchasing a home. Our team is here to help you make sure your plan continues to reflect your needs and goals.
Talk to a Connecticut Attorney Who Understands Your Priorities
Have questions about how Medicare or Medicaid affects your estate? Let’s talk. We’ll walk you through your options so you can feel informed and empowered.
Visit us in Milford
Call us at (203) 883-1656
Schedule a consultation
At Harper Law, we combine reliable legal planning with a hometown feel because protecting your future should feel personal.
Disclaimer: This blog is for informational purposes only and does not constitute legal advice. Please consult an attorney for specific legal guidance.