Planning for Medicaid is a perfectly legal. Many Healthcare Consumers are planning to be poor sooner rather than later to qualify for a Medicaid program. The new industry of lawyers and advisers helps the healthcare consumer to plan how to manage finances so that no monies are spent on nursing homes and other healthcare related expenses.
Is this legal or are consumers “Gaining the System”? First, it is legal. There are many different rules and regulation (State Specific in some instances) to complete before the consumer qualifies for Medicaid. Most have retained lawyers or advisers to guide them through the process. The process is not free. Are consumers “Gaming the System”? It depends on how you look at Medicaid Planning. Many lawyers and advisers work with consumers to reduce or eliminate taxes. Medicaid Planning/Tax Planning are they similar? Both strategies focus on how to maximize government regulations for the consumer. The difference is: Medicaid Planning is attempting to qualify a consumer for a government program for the poor when the consumer has some assets to pay for their healthcare.
Regardless for what you think, Medicaid Planning is a healthcare strategy available to the healthcare consumer. K. Gabriel Heiser has written a book called “How to Protect Your Family’s Assets From Devastating Nursing Home Costs” that can be used a guide and will answer many of your questions.