Common Misconceptions About Applying for Medicaid — And Why Talking With an Attorney Matters

When it comes to long-term care planning in Michigan, few topics create more confusion than Medicaid. Families often begin researching eligibility after a loved one needs nursing home care, only to find an overwhelming amount of conflicting information online. Unfortunately, misconceptions about Medicaid can lead to unnecessary penalties, lost assets, or delays in receiving critical benefits.

At Malicoat Law, PLC, we help families navigate the Medicaid process every day. Below are some of the most common misunderstandings we see — and why speaking with an experienced elder law attorney can make all the difference.

This is one of the most common, and most harmful, myths. While Medicaid does have strict asset limits, you do not have to impoverish yourself or your spouse to qualify. Michigan allows many exempt assets, and there are legal strategies to protect savings, a home, and even income while still pursuing eligibility.

Working with a Medicaid planning attorney ensures that any asset restructuring follows Michigan rules, avoids unnecessary spend-downs, and protects as much as possible for the healthy spouse or other family members.

Some families assume they can simply transfer assets to children or other relatives to meet Medicaid’s asset limit. However, Medicaid has a five-year “look-back” period. Any gifts or transfers for less than fair market value during those five years can trigger a penalty period,  a timeframe during which Medicaid will not pay for nursing home care.

These penalties can be financially devastating if you don’t have a plan in place. An attorney can help you:

While long-term care facilities often assist families with forms, they cannot provide legal advice on protecting assets, navigating penalties, or planning for a spouse’s financial security. Their role is administrative, not advisory.