Does Medicaid pay for long-term care?

Yes. Medicaid is the single largest payer of long-term care in the United States, and it does cover ongoing custodial care — including nursing home care — which Medicare does not.

The catch is that Medicaid is means-tested: you generally must spend down most of your assets and meet income limits before you qualify. Rules vary by state, and there is a look-back period on asset transfers.

Because of the spend-down, many people use long-term care insurance to protect their savings and stay independent of Medicaid. A Partnership policy can even let you keep more assets if you later need Medicaid.

General information only. This is educational and not insurance, legal, tax, or financial advice. Rules and products vary and change — confirm the specifics with a licensed professional.