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Medical Assistance Planning

Medicaid is the federal program that provides for healthcare for needy persons and
families. Medical Assistance (MA) is Minnesota’s publicly funded health care program.
Applications are made through local county social services offices. Minnesota’s
Department of Human Services oversees the program statewide. This is a massive
program which for estate planning purposes picks up the cost of nursing home services
for indigent people. This is not an entitlement. It is extremely expensive with average
nursing home costs running $60,000.00 to $70,000.00 per year per person. It is an
enormous drain on government finances. The state of Minnesota therefore requires all
applicants to virtually exhaust their personal assets before qualifying. Generally speaking
an applicant may only have very minimal assets; $3000.00 along with a few other
possessions, sometimes a house. The State of Minnesota may impress a lien on an
applicant’s homestead which it will collect following death.

Some people anticipating a personal need for medical assistance may wish to plan to
avoid exhausting all their assets prior to qualifying for medical assistance, thus allowing
the children to receive part of what they have worked so hard for.

This is becoming more and more complicated as time goes by with increasingly more
rules and regulations and attempts by the State of Minnesota to collect what they have
paid following death.

Set up an appointment with me to avoid running afoul of the regulations and incurring
penalties if you wish to do this kind of planning.