Medicaid and TennCare Planning
For many Tennessee families, the cost of long-term care is one of the most significant financial concerns they will ever face. Nursing home care in Tennessee can run well over $100,000 per year, and home-based care adds up quickly as well. Medicaid, which operates in Tennessee as TennCare, is often the primary way families manage those costs, but qualifying is not automatic, and the rules are strict.
How TennCare Eligibility Works
TennCare has both income and asset limits that applicants must meet. The rules include a look-back period, during which past financial transfers are reviewed to determine whether assets were moved in ways that could affect eligibility. Working with a Medicaid planning attorney before a crisis gives families time to structure their finances in ways that comply with the law.
Strategies that May Be Available
Depending on your family’s situation and timing, there may be legal tools that can help protect assets while still qualifying for TennCare benefits. A Medicaid Asset Protection Trust (MAPT), for example, is used to move certain assets out of the applicant’s ownership, which can help with TennCare’s asset limits. On the other hand, a Qualified Income Trust (QIT), also called a Miller Trust, may help when an applicant has too much monthly income to qualify for TennCare long-term care benefits.
Common Mistakes Families Make
One of the more frequent issues we see is families transferring assets to children without understanding the consequences for Medicaid eligibility. Another is waiting too long to plan, which shrinks the available options. Understanding the rules early, even if a care need is not immediate, helps families avoid mistakes that can be difficult to undo.