What Medicaid Changes Could Mean for Your Parents’ Long-Term Care
With proposed Medicaid changes in 2025, families planning for long-term care need to stay informed. Here’s what adult children should know—and how thoughtful planning can help.
If you’re like many Gen Xers or older millennials, you might be finding yourself in a new role—helping your parents prepare for the future.
For some, that means managing finances. For others, it’s stepping in after a fall or hospitalization. And for many, it involves asking hard questions about long-term care: How will we pay for it? Will Medicaid cover it? What happens if we wait too long to plan?
Now more than ever, these questions matter. In 2025, significant changes are being proposed at both the federal and state levels that could reshape how Medicaid supports long-term care—and how easily families can access those benefits.
Let’s take a closer look at what’s happening, what it could mean for your parents, and how early planning can help you stay in control.
Federal Budget Proposals Could Affect Coverage
In Washington, lawmakers are currently reviewing a federal budget that includes over $880 billion in proposed cuts to Medicaid over the next decade. While nothing has been finalized yet, some of the changes being discussed would make it more difficult for individuals to qualify and remain eligible for Medicaid coverage.
For example, the budget includes quarterly eligibility checks—a move that may increase the risk of losing coverage due to paperwork errors or missed deadlines. There’s also discussion about adding work requirements for certain groups of adults receiving Medicaid, and reducing the overall funding that supports long-term care programs across the country.
These proposed changes wouldn’t just affect people currently receiving care. They could also reshape how states deliver services in the future, potentially leading to longer wait times, stricter qualification standards, or fewer available options for seniors and people with disabilities.
Nursing Home Access Is Shrinking in New York
Meanwhile, here in New York, we’re already seeing the effects of a strained long-term care system. Over 30 nursing homes have closed across the state in recent years—many of them in rural areas. A major factor behind these closures is Medicaid underfunding. The program simply isn’t paying nursing homes enough to cover the actual cost of care.
As a result, remaining facilities are often operating with fewer staff and more demand. That means families may face longer waitlists, reduced availability of beds, or the need to look farther from home to find care.
If your parent might need nursing home care in the coming years, it’s important to understand how these closures—and any future Medicaid policy shifts—could impact your planning options.
Rules for Home Care Are Getting Stricter, Too
It’s not just nursing homes that are affected. New York is also preparing to implement a new 30-month “look-back” period for individuals applying for Medicaid coverage for home-based services. This means that if your parents have transferred assets or made gifts during that time, they could face delays or penalties when applying for coverage.
For families who were hoping to keep aging parents at home for as long as possible, this change may come as a surprise. The bottom line is this: whether your loved one wants to stay in their home or transition to a facility, the rules around qualifying for help are getting more complex.
Planning Ahead Can Keep You in Control
The good news? You don’t have to wait for a crisis—or a major policy shift—to start preparing. Working with an experienced elder law attorney can help you create a plan that protects your parents’ assets, preserves their options, and reduces stress if care is suddenly needed.
At Harris-Pero Law Firm, we help families navigate Medicaid eligibility, protect the family home, and apply for coverage with confidence. Whether you’re planning years in advance or responding to a new health diagnosis, we’ll walk you through your best options step by step.
You Don’t Need to Guess Your Way Through This
Medicaid planning doesn’t have to be overwhelming—but it does need to be proactive. With the landscape shifting, the earlier you start the conversation, the more control your family has over the outcome.
If you’d like to learn more about how these proposed changes could impact your loved ones—or you’re ready to build a plan that meets their needs—we’re here to help.
Don’t wait for a policy change to catch you off guard.
Let’s talk about the smartest way to protect your parents’ future.
Whenever you’re ready, we are too. Contact us today to get started!
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