Core Insights - Long-term care costs, particularly for nursing homes, can significantly deplete retirement savings, with the national average cost for a semi-private room exceeding $94,000 per year [3] - Medicare offers limited coverage for nursing home stays, primarily for short-term rehabilitation, while Medicaid serves as a primary payer for long-term care, subject to strict financial eligibility criteria [4][3] - Medicaid eligibility is determined by income and asset limits, with individuals typically allowed no more than $2,000 in countable assets, and married couples having different asset retention rules [4][6] Medicaid Eligibility and Planning - Medicaid is a means-tested program, requiring individuals to meet specific income and asset thresholds to qualify for nursing home coverage [4][6] - Asset transfers to trusts or other entities can be strategies to qualify for Medicaid, but a five-year lookback period applies, scrutinizing any transfers made within that timeframe [7][8] - Proper planning, including the use of special trusts, home equity transfers, and annuities, can help protect assets from Medicaid spend-down requirements [8][9] Financial Advisory Role - Engaging a financial advisor is recommended for individuals planning for long-term care expenses, as they can provide guidance on eligibility strategies and asset protection [2][4][9]