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What is a personal services contract?

“Other ways to deal with getting qualified for Medicaid, if you are over assets, is doing things like personal services contracts. Personal services contracts are agreements between family members usually or other care providers, friends, and neighbors where they agree to provide services to you until you die, and in exchange at the set Medicare hourly rate, they pay you to provide those services.

Now, there is a lot more technical details to this, but for the most part, if you are like an 89-year-old woman, your life expectancy is probably about three and a half years. You can pay someone in one lump sum to provide care to you for three and a half years and take that lump sum out of your assets. So, if you have a $102,000 and you can put $100,000 into that personal care contract, you’ve now gotten yourself down to the point where you can qualify for Medicaid. Yet, you’ve been able to provide to usually a daughter or a son payment for all of the services that they are going to provide to you until you die, and we can get you qualified very quickly.”

 

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