Tip – Correct information helps avoid mistakes.
We have found that there is a lot of misinformation about social welfare programs, their recipients, and what it costs to participate in the programs. The following are some myths about Medicaid that pays for long-term care:
Myth: Medicaid is a handout or a free ride. Once someone is eligible for Medicaid, the government pays for everything for the participant.
Fact: When a person is deemed eligible for Medicaid, they are required to share in the cost of their medical care. Depending on income level, some participants could pay as much as $3,002.00 per month to participate in the Medicaid program – hardly a free ride. Why would someone pay such a hefty sum to be on Medicaid? The cost of care without Medicaid would be considerably higher and leave them unable to pay for necessary medical care.
Myth: You can give your money to your kids and then qualify for Medicaid.
Fact: For long-term care Medicaid, Idaho reviews transfers made in the 60 months before the application. Gifts made in that window can trigger a penalty period during which Medicaid will not pay for long-term care.
Myth: If you put your home into a revocable trust, Medicaid can’t take it.
Fact: A revocable trust doesn’t protect your home from Medicaid Estate Recovery. Because you keep control of the trust, Medicaid still treats the home as yours. An irrevocable trust may offer protection in some situations, but only if the home was transferred into the trust more than five years before you apply for Medicaid (the “look-back period”).
Myth: Medicaid only pays for nursing homes.
Fact: Idaho Medicaid also supports people at home. The A&D Waiver covers services such as in-home personal care, adult day services, delivered meals, and respite for people who need a nursing-facility level of care but want to stay in the community. Many people are unaware these options exist and assume a facility is their only choice.
Myth: Once you are on Medicaid, the government takes over all your money.
Fact: Medicaid participants remain in direct control of their income. Continued eligibility in the program requires the participant to make the aforementioned “share of cost” payment.
Myth: If your spouse needs to go on Medicaid, you must spend down all your money for him or her to qualify.
Fact: The community spouse can retain the following property even if his or her spouse goes into a facility and receives Medicaid:
- The parties home and contiguous property
- One vehicle
- Prepaid burial plans
- ½ of the parties’ funds in bank accounts and cash value in insurance policies up to $162,660.00 for 2026.
In conclusion, the best way to avoid costly mistakes in qualifying for Medicaid is to have the correct information, which can be provided by an elder law attorney.
Tom Packer is an Elder Law Attorney serving all Southeast Idaho. As part of his law practice, Tom offers Life Care Planning to deal with the challenges created by long-term illness, disability and incapacity. If you have a question about a Senior’s legal, financial or healthcare needs, please call us.
October 2026