Long-term care costs in Tennessee can run $6,000–$10,000+ per month. For most families, savings run out fast — and then the question becomes: what does Medicaid actually cover, and will we lose the house?
Medicare Won’t Cover It
This is the most common misconception in long-term care planning. Medicare covers skilled nursing care for up to 100 days after a qualifying hospital stay — then it stops. Extended nursing home care falls to private pay or Medicaid. Most families don’t discover this until it’s too late.
What Medicaid Covers — and Who Qualifies
Medicaid (TennCare in Tennessee) covers long-term nursing home care for those who meet income and asset limits. Not all assets are counted — your primary home, one vehicle, and personal belongings are generally exempt. A spouse remaining at home is also entitled to keep a portion of assets and income.
The 5-Year Look-Back Rule
When you apply for Medicaid, the state reviews all financial transactions going back 60 months. Gifts or transfers made for less than fair market value during that window can trigger a penalty period — a stretch of time Medicaid won’t pay, regardless of eligibility. This is why giving assets to children right before applying is one of the costliest mistakes families make.
What About the House?
The home is generally exempt while the Medicaid recipient is alive. But after they pass, Tennessee’s TennCare estate recovery program can seek reimbursement from the estate — and the home is often the primary target. With proper planning done well in advance, legal tools like irrevocable trusts and life estate deeds can protect it.
The Cost of Waiting
The families who protect the most are those who planned before a crisis. Once the five-year clock is running — or has already run — options narrow significantly. A single consultation is often all it takes to understand where you stand and what can still be protected.
Worried about how long-term care costs could affect your family? Beacon Legacy Group helps Tennessee families understand their Medicaid options before a crisis forces their hand. Schedule a free consultation today — the sooner you start, the more options you have.