Navigating the impact of inflation on long-term care costs can come with many challenges, especially when it comes to eligibility. In many cases, it is essential that you begin long-term care cost protection planning well in advance to get a favorable outcome. So, now is the time to seek the help of a long-term care attorney in Washington, whether your parents already have a long-term care plan in place or need to adjust it for inflation.
Long-Term Care Costs in 2025 and Beyond
Medicaid planning in Spokane can come with many challenges, especially if you take into consideration the impact of inflation on long-term care costs. Unfortunately, inflation impacts everything, and you need to prioritize estate planning for rising costs.
According to the Bureau of Labor Statistics, the inflation rate for adult care services and long-term care was 4.9% between 2023 and 2024. Overall, these expenses have increased 3.7% on average over the past decade in the United States.
Also, the average cost of assisted living in Spokane is around $6000 a month, which is impacted by the level of care needed and the specific facility. While, on the other hand, nursing homes in Spokane average at $12,000 a month.
As you are planning your parents’ long-term care, it is essential that you take these average expenses into account. However, you also need to factor in inflation, changes in circumstances, and the different levels of care your parents may need.
Medicaid Eligibility Rules
Medicaid planning in Spokane is essential, especially when you take into consideration Medicaid and inflation, and how the two overlap. You should be aware of the Medicaid eligibility rules and how they vary year to year.
When creating a long-term care plan for your parents, you should consult the help of an elder law attorney. They will have experience with Washington laws, Medicaid eligibility rules, and how all of these things change year to year.
That being said, here is a general overview of the income limit, asset limit, and level of care requirements for different individuals:
- Institutional/nursing home Medicaid: $2901 income limit, $2000 asset limit, and nursing home level of care for singles. $5802 income limit, $3000 asset limit, and nursing home level of care for married couples.
- Medicaid waivers/home and community based services: $2901 income limit, $2000 asset limit, and nursing home level of care for singles. $5802 income limit, $3000 asset limit, and nursing home level of care for married couples.
- Regular Medicaid/aged, blind, and disabled: $967 income limit, $2000 asset limit, and help with ADLs level of care. $1450 in income limit, $3000 asset limit, and help with ADLs level of care for married couples.
Keep in mind that these limits will look a bit different if only one spouse is applying for Medicaid.
Managing the Impact of Inflation
Inflation is a tricky topic, especially when you compare it to the already overwhelming process of long-term care planning and Medicaid eligibility. That being said, there are some ways that you can adjust for the impact of inflation so that your parents still qualify for Medicaid.
Medicaid-Compliant Annuities
A great way to prepare for inflation and the 2025 Medicaid eligibility requirements is to use Medicaid-compliant annuities. Annuities helped to convert a lump sum of money into a stream of income over a set period of years.
There are many different types of annuities that are Medicaid-compliant and are a great option as they are reliable and stay the same even as the economy and market fluctuates.
Spend-Down Strategies
Different spend-down strategies can help you ensure your parents meet Medicaid eligibility rules while adjusting for inflation. Keep in mind that spending down, although a useful option, must be done cautiously. You don’t want to violate Medicaid’s look-back rule or spend-down without proper planning.
An elder law attorney can help you create a spend-down strategy that is in line with Medicaid rules and prepares for inflation.
Trusts
You can also navigate the impact of inflation on Medicaid limits by utilizing trusts. Trusts provide a legal option for those who may not meet the requirements for Medicaid due to having too many financial resources. This works by allowing you to deposit part or all of your parents’ income into the trust account, which Medicaid will disregard.
How Planning Ahead Can Help You Stay Eligible
Anything that has to do with long-term care planning or Medicaid should never be rushed. There are many Medicaid rules you must follow, and you need to make sure you prepare adequately for future costs.
By planning ahead and taking inflation into account, you are creating a buffer against future cost increases. Long-term care plans can accommodate any future cost increases as well as changing care needs.
Additionally, having a long-term care plan already established creates a clear path forward. You won’t have to worry about making last-minute decisions when your parents need additional or new types of care. You will also have more peace of mind knowing that your parents’ wishes will be upheld.
If you are overwhelmed by the idea of creating a long-term care plan for your parents, a long-term care planning attorney can help you get started.
Get in Touch With an Elder Law Attorney Today
If you want to prepare for the impact of inflation on long-term care costs, reach out to a long-term care attorney in Washington at Legacy Law Group. Contact us today at 509-315-8087 to speak with one of our attorneys to get the process started.
FAQ
Will rising care costs make it harder to qualify for Medicaid?
It may, especially for families who have failed to create a long-term care plan and may not have followed a spend-down strategy.
Does Washington adjust Medicaid eligibility for inflation?
While Washington does adjust Medicaid eligibility to reflect inflation, these adjustments take time and often lag behind real cost increases.
How can legal planning protect my family from inflation risks?
Planning ahead can help you make adjustments for future cost increases and protect income and assets without risking Medicaid eligibility.
