Medicaid Myths vs. Facts for Kansas Families | Medicaid Planning Attorney Derby & Wichita KS

December 19, 2025•6 min read

When a loved one needs long-term care, the emotional toll can be overwhelming. Suddenly, you are faced with decisions about nursing homes, assisted living facilities, and how to pay for it all. In Derby and Wichita, nursing home care can cost thousands of dollars every single month. Naturally, families worry about how they will afford this without losing everything they have worked a lifetime to build.

To make matters worse, there is a lot of bad information out there. You might hear advice from a neighbor, a well-meaning friend, or even someone at a local coffee shop. While they mean well, relying on incorrect information can be financially devastating. It can lead to denied applications, penalty periods, and the unnecessary loss of your family home.

At Advanced Legal Planning, we want to clear the air. We believe that you deserve the truth so you can make empowered decisions. Let’s separate myth from reality regarding the Medicaid myths Kansas families face, so you can protect your financial future.

Myth 1: "I Have to Give Away All My Assets to Qualify for Medicaid"

The Fact: You do not have to be completely destitute to qualify for Medicaid benefits.

This is likely the most common and dangerous myth we encounter. Many people believe they must have absolutely zero money in the bank before Medicaid will help. The truth is that Kansas Medicaid rules allow you to keep certain "exempt" assets. These generally include your primary residence (within certain equity limits), one vehicle, prepaid burial plans, personal belongings, and a small amount of cash.

Furthermore, if you are married and only one spouse needs care, there are special "spousal impoverishment" rules. These rules are designed to prevent the healthy spouse (the one staying home) from going broke paying for the other spouse's care. With proper legal planning, we can often protect a significant portion, if not all, of the healthy spouse’s assets. You do not have to spend your life savings down to nothing if you have the right plan in place.

Even if you are single and have significant assets, there are planning techniques that could save a significant portion of them.

Myth 2: "Because I Own a Home, I Won't Qualify"

The Fact: Your home is usually considered an exempt asset while you are alive, but it is at risk after you pass away unless you plan ahead.

Owning a home in Derby or Wichita generally does not disqualify you from receiving Medicaid benefits immediately. As long as you or your spouse lives there, or if you intend to return home, the state views it as exempt. However, the danger lies in what happens later.

Reviewing the "Estate Recovery" program is essential. After a Medicaid recipient passes away, the state of Kansas may try to collect the money they spent on care by placing a claim against the person's estate—which usually means the family home. This catches many families by surprise. Through the use of specific trusts and legal strategies, our team helps families ensure the home stays in the family rather than being sold to pay back the state.

Myth 3: "Medicare Will Cover My Nursing Home Stay"

The Fact: Medicare only pays for short-term rehabilitation, not long-term custodial care.

This confusion is understandable because the names sound so similar. However, Medicare is an insurance program that covers medical bills, hospital visits, and short-term recovery. If you break a hip and need rehab for a few weeks to get back on your feet, Medicare typically helps with that.

However, Medicare does not pay for "custodial care," which is the type of help most people need in a nursing home—help with eating, bathing, dressing, and daily supervision. That is where Medicaid comes in. If you are relying on Medicare to pay for a 5-year stay in a nursing facility, you will be in for a rude awakening when the bills start arriving. Planning for Medicaid eligibility is the primary way to cover these long-term costs without draining your savings.

Myth 4: "I Can Just Give My Money to My Kids to Qualify"

The Fact: Giving away assets can trigger a severe penalty period where Medicaid will refuse to pay for your care.

Many people think, "I’ll just write a check to my daughter for my savings, and then I’ll look poor on paper." This is a critical mistake. Kansas Medicaid has a strict 5-year "Look-Back Period." When you apply for benefits, the state can look at every financial transaction you have made over the last 60 months.

If they see that you gave away money, transferred a car title to a nephew, or sold your house to your son for $1, they will calculate a penalty period. During this time, you will be ineligible for Medicaid, even if you have no money left to pay for care. Never transfer assets without speaking to an attorney first. There are legal ways to protect assets, but simple gifting is rarely the right answer.

Myth 5: "It’s Too Late for Me—My Spouse is Already in a Nursing Home"

The Fact: It is almost never too late to protect some assets.

We often meet families who are in calm despair because their loved one has already been admitted to a facility. They assume they missed the window for planning and must simply "spend down" everything until they hit the poverty line.

This is simply not true. While planning five years in advance is ideal, we also specialize in "crisis planning." Even if your spouse entered a nursing home yesterday, there are still effective legal tools we can use to save a portion of your estate. We can help you convert countable assets into exempt assets or utilize compliant annuities to protect the community spouse. Don't throw in the towel; there are still options to save your legacy.

Why Choose Advanced Legal Planning?

Navigating the Medicaid system in Kansas is like walking through a minefield. One wrong step can create delays or financial penalties. You need a guide who knows the local terrain. At Advanced Legal Planning, we understand the specific laws and regulations that apply to Derby, Wichita, and the surrounding areas.

We don't just fill out forms; we create a strategy. Our goal is to take the burden off your shoulders. We deal with the complex paperwork and the government office so you can focus on being a spouse, a son, or a daughter to your loved one. We have helped many families save hundreds of thousands of dollars that would have otherwise gone to nursing home bills.

Take the Next Step Toward Peace of Mind

The worst thing you can do is wait or rely on rumors. Every day you wait could be a day of lost savings. Whether you are planning ahead for the future or currently facing a medical crisis, there is hope. You care about your family’s security, and so do we.

Let us help you understand your rights and your options. You do not have to lose everything to get the care you need.