So what I’m reading is if ever placement in home needed, a married couple uses all their cash then files for Medicare.

You are not the only senior who may need to apply for Medicaid. Most seniors, however, have planned sufficiently to have funds to see an Elder Care attorney to help them.

Over dramatizing the process of asking the government for help is unnecessary. Neither you nor your spouse will be left homeless if you do.

A lien is sometimes placed on a home in order to recover the costs incurred TO Medicaid BY the senior. It's called MERP.

I suggest you calm down, stop listening to hearsay, and call around to elder care attorneys in your area who offer free consultations.

And remember. You are not destitute if you own a home that's paid for in full! Many, many seniors do not. But those who do often choose to sell the home, pocket the large amount of cash and downsize.

You mean Medicaid. Medicaid is administered by each state in their own way, so if you want to know what's coming you can go to your state's Dept of Health to read what the qualifications are, or talk to a certified elder law attorney or a Medicaid Planner for your home state.

Medicaid does not physically take homes, it puts liens on homes that need to be satisfied before the new owner can actually own it.

Read more here:

https://www.agingcare.com/topics/104/medicaid

... and you need to understand the difference between Medicare and Medicaid:

https://www.agingcare.com/topics/106/medicare

My general advice, without knowing more about the OP's situation, is that if someone has enough money that they'll need to spend it down to be eligible for Medicaid, the person has enough money to consult an elder law attorney about how to spend down the money to be eligible for Medicaid.

In our case my mother was the community spouse and my father went into the nursing home under Medicaid. Medicaid allowed her to keep my father's social security so that she could maintain the house they owned, She could not afford to her social security alone, She stayed in her home until she her condition deteriorated.

We used an eldercare attorney for all this because there are a lot of moving parts. I think it is important that you do so as well.

I think you mean Medicaid?

Nobody is out on the streets, the spouse can remain in the home the rest of their life after the assets are split. And Medicaid doesn’t “take your house” or “take all your money”. They provide, using taxpayer money, the medically necessary care regardless of ability to pay. Why does everyone act like a victim that Medicaid expects you to chip in what you can, when it’s reasonable to do so.

The rules and regulations vary by state. Medicaid will require an asset threshold that the community spouse will be able to have without a claw back but it is best to consult with a professional. The community spouse will not be left "impoverished ".

The long term care facility will be able to provide some assistance but it will be best to see an attorney even for a consultation. You indicated in a follow up post you are unable to afford one. I would contact state/county department of aging services to see if you qualify for assistance. They can provide better available sources that you may not be aware of.

You’re reading false information. My family’s experience, Mom used Medicaid after burning through a long term care insurance policy living in a nursing home. The nursing home took all of her small SS check. My dad kept all of his SS check, all of his pension, all of the money in their checking and savings accounts, and continued to live in their home. He kept one car and sold one car. His life and finances were unchanged by mom using Medicaid. It was not a nightmare at all

I believe you have Medicare and Medicaid confused. Please look in the resources page of this site to learn the differences.

100% False. Just where are U gleaning your misinformation from?

MediCARE is health insurance. Eligible for MediCARE by paying into FICA when you worked. Once age 65*, file for Medicare. Becomes your primary health insurance**. For most, Part A premium free and Part B $202 a mo premium (taken from SS retirement income). If you stick with Original Medicare, then you get a gap or supplemental health insurance. Like Blue Cross, Humana. Or you leave Original Medicare and go to a Medicare Advantage Plan (fwiw not a fan as their model is having what they pay for to be as narrow and limited as possible, and inevitably elders end up with out of network bills).

If you are low/lower income, you may qualify to get MedicAID as your gap/supplemental health insurance to go with your MediCARE. You would be a “dual” on MediCARE & MedicAID for health insurance. Huge # of age 80+ in the US are “duals”, as their SS retirement income is low. Someone paid a mere $800 a mo in SS retirement income would qualify to be a dual. (fwiw lots of more younger retirees get SSA max of $4,152 - $5,182 a mo, so don’t qualify to be a “dual”).

Here is where MEDICAID gets confusing. Medicaid is a huge # of different programs & all are run specifically by your State for how eligibility is done but under overall Federal guidelines. Medicaid as health insurance is a huge - HUGE - # of intersecting programs. Medicaid as health insurance is for children, adults and elderly and income based for eligibility.
& this Medicaid has subsets, like pays the Part B premiums or pays the Part D drug coverage. Gets very in the weeds to understand eligibility.
HOWEVER
Medicaid is also Home & Community Based Services, like in-home healthcare. HCBS eligibility tends to be both income and “at need” for a specific care plan. Assets (savings, investments, value of homes, land, autos, etc.) usually not a factor for HCBS eligibility.
AND
Medicaid is also Long Term Care programs. LTC Medicaid is different as it totally looks at both income and assets for eligibility. For applicant to qualify, for almost all States have to be impoverished, with a max of 4K in nonexempt assets (a home and a car can be an exempt asset). LTC Medicaid is super narrow eligibility. But - THIS IS IMPORTANT - for a couple where only 1 is at need for a facility, only they have to become impoverished. The other spouse - the Community Spouse- still living in their home or apt, does NOT themselves have to become impoverished. For couples their incomes and assets have to get segregated and perhaps the CS files for a resource allowance, and perhaps other changes done….. but doing this type of stuff is imho absolutely never ever a DIY. Couples stuff is elder law atty experienced with how Medicaid runs in your State. Maybe you live in a State that actually has probono legal clinics for those low income that you could seek advice from. Or there’s a law school that does this as a part of community outreach. Knowing how to structure couples finances so that the CS isn’t “out on the streets” requires help from an atty or an experienced staff at a social services agency. It’s on you as the future CS or y’all’s POA to find this out.

This - THIS! - is the harsh reality of aging in America. Lots of fear mongering and misinformation. Try not to get caught up in it. Call around to find an atty experience in LTC MedicAID in your State.
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*MediCARE does have disease exemptions, like ALS, that qualify for under age 65 eligibility. If you were SSDI, that too lets you get early Medicare after 24 SSDI consecutive months. Not SSI but SSDI.

** if you or a spouse are still working after age 65 & on employer health insurance, then your Medicare gets suspended & U use that employer health insurance. For those that are this, it can get crazy confusing when a hospitalization or outpatient procedure happens as staff kinda automatically assume over age 70=Medicare filing for billing.