Under
certain circumstances, Medicare will provide for an individual’s
nursing home coverage for a limited time.
Most people, however, pay for their nursing home care out of
their own pocket until they have exhausted their savings, and then
rely on Medicaid to pay for their remaining medical expenses.
In the face of an aging population and
rising health costs, the number of individuals unable to afford the
costs of health care has increased dramatically. This increase
has imposed a serious financial burden on state and federal
governments. Between 1988 and 1993 total Medicaid spending grew
from $26 billion to an estimated $139.8 billion. Between now and
2002, Medicaid spending is projected to grow by $150.8 billion; this
translates into an average annual growth rate of 10.1 percent.
As a result of this tremendous growth, the federal government requires
states to seek recovery, from estates, of the monies disbursed to
Medicaid beneficiaries under most instances.
