Protecting Assets From Nursing Home Costs in Pennsylvania

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If you’re worried that a parent’s or spouse’s nursing home bill will wipe out a lifetime of savings, you have more options than you might think. With the right planning, you can protect assets from nursing home costs while still qualifying for Medicaid to cover the bill. But Pennsylvania’s rules are specific, and mistakes can be expensive.

This page covers the legal strategies Pennsylvania families use to protect a home, savings and other assets from long-term care costs. It also explains where a Certified Medicaid Planner can help you use them correctly.

Senior man reviewing paperwork about long-term care Medicaid and nursing home costs

Asset Protection Strategies in Pennsylvania

Pennsylvania Medicaid asset protection generally falls into a few categories. Families often spend down assets on exempt purchases. Others convert countable assets into an income stream through a Medicaid-compliant annuity. Some protect a portion of assets for a healthy spouse. Each of these can help protect assets from nursing home costs.

How to Protect Savings From a Nursing Home Without Losing Medicaid Eligibility

Many families assume that protecting savings means hiding or giving away money. This is exactly what Pennsylvania’s Medicaid look-back period is designed to prevent.

The appropriate path is to apply the rules of Medicaid correctly. This often involves making certain purchases, such as a prepaid funeral, home repairs, or paying off debt. These purchases reduce countable assets without triggering a penalty, and they help protect assets from nursing home costs.

A spouse who doesn’t need care in a nursing facility can keep a protected share of the couple’s resources. This falls under the Community Spouse Resource Allowance.

Every family’s asset mix is different, so the right strategies depend on your specific numbers and timeline. A Certified Medicaid Planner reviews each case before you file anything.

Advisor explaining long-term care Medicaid to a senior and family member
Helping hands illustration for long-term care Medicaid planning help

We’re here to help

The strategies that protect a family’s savings only work if you do them correctly and in the right order. A mistake can cost you the very assets you were trying to protect. We handle the Medicaid application and make sure your plan to protect assets from nursing home costs holds up under the county’s review. We also fight any denial that shouldn’t have happened.

Start with Pennsylvania’s five-year Medicaid look-back period. Then schedule a free consultation to review which asset protection strategies fit your situation.

Related reading: how Pennsylvania nursing home Medicaid works, the Medicaid eligibility rules, and our Medicaid planning guide for aging parents, as well as our Medicaid FAQs.