Millionaires on Medicaid

Got a house worth $802,000, lots of savings and a nice car? You might still qualify for benefits.

Article from the WSJ. By Mark Warshawsky, 1-7-14. Mr. Warshawsky, an adjunct scholar at the American Enterprise Institute, is a former vice chairman of the federal Commission on Long-Term Care, appointed by Congress and the president last year. Excerpts:

 "The rules wouldn't matter if wealthy individuals shunned Medicaid long-term care benefits. But with Medicaid crowding out private alternatives, many don't. In fact, 15% of elderly individuals in the middle-income quintile, 8% in the upper-middle quintile, and 5% in the top quintile receive Medicaid benefits.

Even these numbers don't capture the burden wealthy individuals place on Medicaid because they live much longer than the poor. Beneficiaries in the top income quintile receive, on average, double the lifetime payouts of those that are less well-off. And because Medicaid lowers reimbursement rates to providers and restricts benefits to contain costs, the poor are tied to lower-quality care and enjoy far less provider flexibility."