Is there a solution?

For many people, the solution is Medicaid. This jointly administered federal/state government health insurance program will pick up the tab for long-term care costs if you can qualify. However, it takes careful, informed planning to obtain Medicaid eligibility without losing anything in the process, because there is a $2000 limit on countable assets.The good news is that many things that you own do not count. Your home is not a countable asset, but there is an equity limit that changes slightly year-by-year. Suffice to say that it is over $500,000. One vehicle that is used as a primary source of transportation is not counted, and personal effects, wedding and engagement rings, and household items are not countable assets.When it comes the things that are countable, you could give gifts to your loved ones or transfer assets into an irrevocable trust to obtain eligibility. This being stated, you must act in advance, because you are penalized and your eligibility is delayed if you give away assets within five years of applying for Medicaid coverage.