Financial Planning for Medicaid in Illinois
How to navigate the laws and ensure that nursing home care will be covered
By Doug Mentes, Esq. | Last updated on January 19, 2023Use these links to jump to different sections:
The cost of nursing home care continues to rise for the elderly. Costs vary by region and location, but annual costs for nursing home care in Illinois are around $70,000 as of 2018. About one-third of nursing home residents pay out of pocket for those costs. The remaining two-thirds of nursing home residents pay for their care through Medicaid. With so many people reliant on Medicaid to pay for care, it’s likely you, a family member or a loved one will need to understand the rules of Medicaid benefits—rules that are complex when it comes to determining how to qualify.Who Qualifies for Medicaid?
Medicaid assists qualifying low-income individuals, including many seniors. Medicaid assists seniors with housing costs, including in-home care services and nursing home care. To be eligible for coverage for nursing or in-home care costs, seniors must demonstrate a need for the care or service by meeting certain eligibility requirements, including income, and asset limits. These limits change often. As of 2018, to receive Medicaid coverage, Illinois residents are limited to:- $2,000 in assets
- $16,643 in annual income
Be Careful Transferring Assets
Applicants often get themselves in trouble by making decisions without consulting someone knowledgeable in Medicaid rules. One area for problems is the transfer of assets—especially if it appears the transfer was to gain eligibility. Applicants are subject to a five-year look-back period for the transfer of any asset for less than fair market value. If the transfer does not comply with Medicaid rules, the applicant could be disqualified from coverage for a period of time.Exempt Assets
Some assets are exempt from being included in the calculations for Medicaid eligibility. If the senior owns their home, the value of the home can be excluded toward Medicaid eligibility. Equity up to an amount of $572,000 (which is subject to change) is exempt; anything over that amount will not be exempt. Other assets that are considered exempt from being counted toward Medicaid eligibility, include:- Pre-paid burial and funeral arrangements
- One vehicle
- Household items
- Personal effects
Planning for Medicaid
Seniors often have income or assets over and above the limits. However, methods have developed over the years to help seniors gain Illinois Medicaid eligibility. One method is to put money toward exempt assets. Another method in Illinois is the pooled trust. A nonprofit invests the Medicaid recipient’s excess funds—pooled with other recipients’ funds. Medicaid recipients can use the trust funds to supplement Medicaid coverage, special needs and to pay for items or human services not covered by Medicaid, including:- Specialized, medical equipment
- Enhanced healthcare or services
- Companion services
- Clothes
- Transportation
- Even take a vacation
What do I do next?
Enter your location below to get connected with a qualified attorney today.At Super Lawyers, we know legal issues can be stressful and confusing. We are committed to providing you with reliable legal information in a way that is easy to understand. Our legal resources pages are created by experienced attorney writers and writers that specialize in legal content in consultation with the top attorneys that make our Super Lawyers lists. We strive to present information in a neutral and unbiased way, so that you can make informed decisions based on your legal circumstances.
Attorney directory searches
Helpful links
Find top lawyers with confidence
The Super Lawyers patented selection process is peer influenced and research driven, selecting the top 5% of attorneys to the Super Lawyers lists each year. We know lawyers and make it easy to connect with them.
Find a lawyer near you