Common Misconceptions About Applying for Medicaid — And Why Talking With an Attorney Matters

When it comes to long-term care planning in Michigan, few topics create more confusion than Medicaid. Families often begin researching eligibility after a loved one needs nursing home care, only to find an overwhelming amount of conflicting information online. Unfortunately, misconceptions about Medicaid can lead to unnecessary penalties, lost assets, or delays in receiving critical benefits.

At Malicoat Law, PLC, we help families navigate the Medicaid process every day. Below are some of the most common misunderstandings we see — and why speaking with an experienced elder law attorney can make all the difference.

Misconception #1: “You have to spend everything before you qualify.”

This is one of the most common, and most harmful, myths. While Medicaid does have strict asset limits, you do not have to impoverish yourself or your spouse to qualify. Michigan allows many exempt assets, and there are legal strategies to protect savings, a home, and even income while still pursuing eligibility.

Working with a Medicaid planning attorney ensures that any asset restructuring follows Michigan rules, avoids unnecessary spend-downs, and protects as much as possible for the healthy spouse or other family members.

Misconception #2: “I can give assets away right before applying.”

Some families assume they can simply transfer assets to children or other relatives to meet Medicaid’s asset limit. However, Medicaid has a five-year “look-back” period. Any gifts or transfers for less than fair market value during those five years can trigger a penalty period,  a timeframe during which Medicaid will not pay for nursing home care.

These penalties can be financially devastating if you don’t have a plan in place. An attorney can help you:

• Review past financial activity
• Evaluate whether transfers create penalties
• Develop a safe strategy to minimize or eliminate penalty periods

Misconception #3: “I can rely on the nursing home to help me apply.”

While long-term care facilities often assist families with forms, they cannot provide legal advice on protecting assets, navigating penalties, or planning for a spouse’s financial security. Their role is administrative, not advisory.

Only an elder law attorney can help interpret Michigan’s Medicaid rules, structure assets, and build a defensible application strategy.

Misconception #4: “If I apply and get denied, I can just fix it later.”

Incorrect. A denied application remains part of the Medicaid record and can complicate future eligibility. Worse, an avoidable denial may result in months of uncovered care costs while you try to correct errors.

An attorney can help you prepare a clean, accurate application the first time, reducing the risk of delays, denials, or unexpected financial exposure.

Misconception #5: “Medicaid planning is only for people with low income or few assets.”

In reality, many middle-class families, particularly those facing long-term nursing home care, use Medicaid as part of their planning. Elder law attorneys regularly help families with substantial savings protect what they’ve worked for while ensuring access to needed care.

Why Working With an Attorney Matters

Medicaid is a complex mix of federal law and Michigan-specific rules. Small mistakes can cause big consequences. Consulting an experienced Medicaid planning attorney helps ensure:

• Your assets are structured legally and advantageously
• You avoid or reduce penalty periods
• Your spouse remains financially protected
• Your application is complete, compliant, and positioned for approval
• You have support through every step of the process

We’re Here to Help Michigan Families Navigate Medicaid

At Malicoat Law, PLC, we understand how overwhelming long-term care decisions can be. Our team supports families in Midland, Tawas City, Bay City, Saginaw, and throughout Michigan with compassionate, knowledgeable guidance on Medicaid eligibility, asset protection, and long-term care planning.

If you have questions or want to explore your options, we’d be honored to help you understand the process and make confident decisions for your future.

Contact us today to schedule a consultation.