Medicaid Crisis Planning

Medicaid crisis planning is the process of helping someone qualify for Medicaid quickly—after they’ve already entered a nursing home or need long-term care—and are facing immediate, high out-of-pocket costs.

It’s called a “crisis” because:

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• The individual often has too many assets to qualify, and

• They may already be paying $6,000–$10,000 per month for care

Without help, families may burn through their life savings within months. We can show you how to change that outcome.

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⚠️ When Is Medicaid Crisis Planning Needed?

Medicaid crisis planning is used when:

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• A person is already in a nursing home or receiving long-term care

• They haven’t done prior Medicaid or asset protection planning (normal estate planning trusts do not work for this)

• Their assets exceed Medicaid’s eligibility limits (usually $2,000 for individuals)

This is very common when someone is hospitalized and suddenly discharged to a nursing facility—or when dementia or a fall makes 24/7 care unavoidable.

🧰 How Does Medicaid Crisis Planning Work?

A Medicaid attorney will use legal and financial strategies to:

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• Reduce countable assets legally (through spend-downs, annuities, or trusts)

• Protect assets for the healthy spouse or family

• Avoid or minimize penalty periods for recent transfers (within the last 60 months)

• Structure income using Qualified Income Trusts (QITs) if needed

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✅ Common Tools Used in Crisis Planning

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• Medicaid-compliant annuities

• Promissory notes

• Qualified Income Trusts (Miller Trusts)

• Caregiver agreements

• Strategic spend-downs

• Asset protection for the community spouse

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💡 What’s the Goal?

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The goal of Medicaid crisis planning is to preserve as much of the individual’s assets as legally possible while securing fast Medicaid eligibility to pay for ongoing care.

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Done properly, it can save tens or hundreds of thousands of dollars in care costs.

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📞 Why Work With a Medicaid Attorney?

Crisis planning is complex and time-sensitive. Mistakes can lead to:

• Penalties

• Denials

• Delays that cost hundreds of dollars per day of delay

A qualified Medicaid attorney will help you navigate the rules quickly and legally, giving you peace of mind and financial protection.

Mr. Parks has worked as a Medicaid attorney in private practice and as legal counsel to the long-term care workers at Oklahoma’s Medicaid agency. He has reviewed thousands of cases and can provide you with sound legal advice to get the best financial outcome possible for your family.