Medicaid Myths That Could Cost Your Family: Separating Fact from Fiction

For families in Monroe, Orleans, and Genesee Counties, few issues are as stressful as planning for long-term care. With nursing home costs often exceeding $15,000 per month in Western New York, many households worry about losing everything they’ve worked hard to build. Unfortunately, misunderstandings about Medicaid often lead families to make mistakes that cost them dearly. These myths, if left unchallenged, can push loved ones into unnecessary financial hardship and even what is commonly known as “nursing home poverty.”

At Klafehn, Heise & Johnson P.L.L.C., we’ve spent decades helping families in Brockport, Rochester, Albion, Batavia, and surrounding towns separate Medicaid fact from fiction. Here are some of the most common misconceptions—and the truths you need to know.

Myth #1: You Must Spend All of Your Assets to Qualify for Medicaid

One of the most damaging myths is the belief that you must become completely impoverished before Medicaid will cover nursing home care. Families often assume they need to liquidate retirement accounts, sell their home, and drain savings before qualifying. This simply isn’t true.

New York’s Medicaid rules allow certain assets to be exempt, and with proper planning, families can preserve even more resources. For example, the family home can often be protected through trusts, deeds to family members (or others) or spousal protections. Retirement accounts, personal belongings, and certain other assets may also remain largely intactwith proper planning. Proper Medicaid planning ensures care is covered while assets are preserved for spouses and future generations.

Myth #2: It’s Too Late to Plan if Your Loved One Is Already in a Nursing Home

Families sometimes believe Medicaid planning is only possible years before nursing home care is needed. While early planning is always the best strategy, it’s not the only option. Even when a loved one has already entered a nursing home, there are legal strategies that can protect assets, restructure finances, and accelerate eligibility for Medicaid.

We frequently help families in Monroe and Genesee Counties with crisis Medicaid planning. By acting quickly and strategically, it’s possible to preserve a portion of assets and reduce the devastating financial impact—even if care has already begun.

Myth #3: Transferring Assets to Children Is Always the Best Solution

Many parents assume they can simply transfer property to their children and immediately qualify for Medicaid. This approach is risky. New York’s five-year “look-back period” requires Medicaid to review all asset transfers made in the 60 months prior to an application. Transfers made during this period can trigger penalties that delay coverage and leave families paying out-of-pocket during the penalty phase.

While transfers can be part of a Medicaid strategy, they must be carefully timed and structured. Using irrevocable trusts (at least five years ahead of time) or other legal tools can provide asset protection without violating look-back rules. Ill-planned or improper transfers, however, can create bigger problems than they solve.

Myth #4: Medicaid Planning Is Only for Wealthy Families

Another widespread misconception is that Medicaid planning is only useful for the wealthy. In reality, middle-class families in Brockport, Albion, and Batavia are the ones who benefit the most. Wealthy households may be able to pay for care outright, while lower-income households may already qualify. It’s the families in the middle—those with a modest home, retirement savings, or a small business—who are most at risk of losing assets without a plan.

Medicaid planning helps these families preserve what matters most to them: the family home, a savings or retirement account, or farmland that’s been in the family for generations. These are the people who stand to lose the most if they buy into the myth that Medicaid planning isn’t necessary.

Myth #5: Medicaid Will Automatically Take Your Home

Many families fear that applying for Medicaid means losing their home. While Medicaid does have the right to recover costs from estates after the applicant passes away, this doesn’t mean the home will automatically be taken. There are legal tools that protect the family home, including the use of irrevocable trusts, family transfers (with lifetime use), the child-caretaker exemption, the disabled child exemption, spousal protections, amongst others.

With proper planning, families can secure their homes while still qualifying for Medicaid. Without planning, however, the home may be vulnerable to recovery efforts. This is why local guidance in Monroe, Orleans, and Genesee Counties is so important.

Myth #6: Medicaid Planning Is the Same Everywhere

Another costly assumption is that Medicaid rules are universal across states. In reality, Medicaid is both federally and state regulated, which means the rules differ significantly depending on where you live. Strategies that may work in Pennsylvania or Ohio may not apply in New York. Relying on generic advice from the internet or from out-of-state sources can put your family at risk.

Working with local attorneys who understand New York’s Medicaid rules ensures you are planning within the right legal framework. Klafehn, Heise & Johnson P.L.L.C. has deep roots in Western New York and decades of experience with the nuances of New York law.

Why Debunking These Myths Matters

Believing these myths can cost families what they’ve worked for. Without proper planning, savings are depleted, homes are lost or their value squandered, and spouses are left struggling financially. By separating fact from fiction, families can make informed choices that protect both their assets and their peace of mind.

Medicaid planning isn’t about avoiding responsibility—it’s about using the law to ensure seniors get the care they need while protecting family resources for family members. The earlier you start, the more options you have, but it’s never too late to take steps toward protection.

Protecting Families in Western New York Through Medicaid Planning

Families in Monroe, Orleans, and Genesee Counties should not have to face financial ruin to secure quality care for aging parents. By understanding the truth behind Medicaid and working with knowledgeable local attorneys, you can safeguard your assets, preserve your legacy, and avoid the stress of nursing home poverty.

Are you ready to separate Medicaid facts from fiction and protect your family’s future? Contact Klafehn, Heise & Johnson P.L.L.C. today. Our attorneys will guide you through the Medicaid planning process with strategies tailored to your family’s needs and rooted in local experience.

Legal Disclaimer: This article provides general information about Medicaid myths and planning in Monroe, Orleans, and Genesee Counties. It should not be considered legal advice or a substitute for consulting with an attorney. Every family’s situation is unique, and laws vary by state. For personalized guidance, consult with the attorneys at Klafehn, Heise & Johnson P.L.L.C. Portions of this content are considered ATTORNEY ADVERTISING under the New York State Unified Court System Rules of Professional Conduct (22 NYCRR Part 1200). Past results do not guarantee future outcomes.