Can a Nursing Home Access Our $350k in IRAs?

Core Insights - Long-term care costs are significant, with the average annual cost for a semi-private room in a skilled nursing facility exceeding $94,000, potentially exhausting a $350,000 account in about two years if both partners require care [2][3] - A majority of individuals do not incur such high nursing home expenses, as only about 35% of people spend time in nursing homes, with the average stay being around one year [3] - Government programs like Medicare and Medicaid provide financial assistance for long-term care, covering up to 100 days of nursing home care and offering indefinite coverage for those who qualify [4] Long-Term Care Costs - The Genworth Financial Cost of Care Survey indicates that the average daily cost of a semi-private room in a skilled nursing facility is over $94,000 annually, leading to potential rapid depletion of retirement savings [2] - If both members of a couple require similar care, a $350,000 IRA would only cover approximately two years of costs [2] Government Assistance - Medicare covers up to 100 days of nursing home care for individuals over 65, while Medicaid provides coverage for those with limited financial means, allowing for indefinite stays [4] - Medicaid eligibility requires very limited financial resources, with some states allowing only about $2,000 in assets, excluding the primary residence [5] Medicaid Eligibility - Some states do not count IRAs when determining Medicaid eligibility, protecting these assets, while others do, necessitating the spending down of retirement funds before Medicaid will cover nursing home costs [6] - Individuals may gift assets to family members to meet Medicaid's means test, but this must be done at least five years prior to applying to avoid penalties [7]