Basic Options for Long Term Care Planning

Basic Options for Long Term Care Planning The past few decades have been marked by the “graying of America”.  Americans are living far longer than their predecessors and the trend is expected to continue.  While this increased longevity has many obvious benefits (especially as compared to the alternative!), it has not come without consequence.  We may experience good health through our 50s, 60s and 70s, But, for many, medical problems associated with aging will eventually arise such as Alzheimer’s, dementia, stroke, and other conditions that affect our physical abilities and mental acuity. These conditions may eventually require the need for some sort of long term care services, either in home or in a facility such as assisted living or a nursing home. Unfortunately, the cost of these services can be high and traditional health insurance, including Medicare, covers little to none of these expenses.  While Medicare will cover certain long term care expenses if confined to a nursing home, it must be for rehabilitative purposes (as compared to custodial care), requires a prior hospitalization and will max out at 100 days of coverage.  Additional coverages available through Medicare HMOs and so-called “Medi-Gap” policies can assist with co-pays but do not extend the types or duration of coverage. To cover such expenses, the options are typically limited:

1. Self Pay – With nursing home costs sometimes exceeding $100,000 annually, this is not an option for many persons;
2. Long Term Care Insurance – This requires advanced planning as it will not be available once serious medical conditions are diagnosed.  Unlike health insurance which, under the Affordable Care Act aka Obamacare, can be obtained even for persons with pre-existing conditions, those same pre-existing conditions will very likely result in a denial of an application for Long Term Care Insurance policy;
3. Veteran’s Benefits – Veterans with major service related disabilities may qualify for LTC benefits.  For certain other wartime veterans and their surviving spouses, another little known VA benefit may be available to assist with some in-home or facility care; and
4. Medi-Cal – This program can cover a significant part of the cost of care for those whose conditions require care in a skilled nursing facility. While there is a program that can afford assistance for some in-home care, very few persons will qualify for it.

Both Veterans Benefits and Medi-Cal benefits planning typically require advanced planning due to the asset and income limitations of such programs.  Such planning is an integral part of our firm’s planning services. Finding Qualified Long Term Care Planning Assistance With the increased need for long term care has come an increased need for long term care planning assistance.  Unfortunately, many so-called “Medi-Cal planners”, especially non-lawyer planners, provide inadequate, incomplete and sometimes even dangerously defective planning which can cost consumers dearly. It is in your best interest to work with an experienced and qualified elder law attorney when you are faced with the many technical and complex issues involved in long term care benefits planning.  Avoid the temptation to seek the lowest price service.  The old adage “Penny wise and pound foolish” is right on the mark when it comes to long term care planning.