Reverse mortgages could save money on Supplemental Security income and Medicaid benefits

Reverse mortgages are loans available to home owners who are at least 62 years old to help them access a portion of their home’s equity to enable them to age at home.  But according to John Mitchell, a CPA out of Austin, Texas, they can also save the federal government as much as $5 billion a year in Medicaid spending. 

He outlined the fiscal benefits of reverse mortgages in a study he published last year. An article in this week’s Senior Journal suggests that the number could be closer to $30 billion and that dual eligible recipients could be reduced by 20 percent. The point of the article is that homeowners should take financial responsibility for their own long term care instead of shifting the burden to Medicaid.  The point of including this topic here is that very little in life is black or white.  Before choosing or not choosing to pursue a reverse mortgage, determine where you want to live in the last bit of your life and how it should look and then sit down with an elder law attorney and decide how you go about achieving that goal.