Medicaid is a federal health program for individuals with low income and financial resources that is administered by each state. Each state may call this program by a different name. In California, for example, it is referred to as Medi-Cal. In Michigan, the program that helps pay for long-term care in a nursing home is referred to as Medicaid or long-term care Medicaid. This program is intended to help individuals and couples pay for the cost of health care and nursing home care.

Most people are surprised to learn that Medicare (the health insurance available to all people over the age of 65) does not cover nursing home care. The average cost of nursing home care, also called "skilled nursing" or "convalescent care," can be over $10,000 per month in metro Detroit. Most people do not have the resources to cover these steep costs over an extended period of time without some form of assistance.

Qualifying for Medicaid can be complicated; each state has its own rules and guidelines for eligibility. Once qualified for a Medicaid, Medicaid will assign you a co-pay (your Share of Cost) for the nursing home care, based on your monthly income.

At the end of the Medicaid recipient's life (and the spouse's life, if applicable), Medicaid will begin "estate recovery" for the total cost spent during the recipient's lifetime. Medicaid will issue a bill to the estate, and, in some states, may place a lien on the recipient's home in order to satisfy the debt. In Michigan, liens are not currently used, and estate recovery is only pursued against assets in the probate estate. Many estate beneficiaries discover this debt only upon the death of a parent or loved one. In many cases, the Medicaid debt can consume most, if not all, estate assets.

There are legal elder law planning strategies available that can help you accelerate qualification for Medicaid benefits, and also eliminate the possibility of a Medicaid estate recovery at death. However, each state's laws are very specific, and this process is very complicated. It is very important to consult with an experienced elder law attorney in your jurisdiction. Residents of Michigan are welcome to contact elder law attorney Andrew Byers regarding estate recovery.