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Guarding Your Wealth for Seniors
Facing the Long-Term (Care) Nightmare: Part 1
The government is likely to cover even less care in
the future
By Jeffrey D. Voudrie, CFP
Jan. 11, 2006 - Recent legislation in Congress may
make it even more difficult for seniors to qualify for government-paid
long-term care coverage. If you don’t take action now, you may be
setting you and your family up for a Long Term Nightmare!
This problem is so potentially damaging, yet so
little understood, I’ve decided to dedicate multiple articles to
covering it. In this article, I’ll expose the problem. Future articles
will explain possible solutions.
Seniors know the potential cost of long-term care
could devastate them financially. The thought of seeing the nest egg
they’ve worked years to build evaporate to pay for their care is hard to
take. Some seniors seek to find ways to manipulate the system so that
they can qualify for government assistance. Others mistakenly believe
that Medicare and Medicaid will pay for their care.
The reason that many feel the government should
cover this cost is because Medicare and Medicaid are designed to provide
health insurance to those over 65 (MediCARE) or to those who are
impoverished (MedicAID). Since the need for care is usually the result
of failing health, why shouldn’t it, they reason.
The terms ‘long-term care’ and ‘skilled-nursing
care’ refer to different needs. Understanding the difference is critical
to understanding the problems you and your family may face. Knowing the
difference will prevent a false sense of security.
‘Long-term care’ is a generalized term that refers
to the assisted care individuals may require in their homes, an
assisted-living facility or a nursing home. ‘Skilled-nursing care’ is a
specific term used when that assistance must be provided by a licensed
or registered nurse.
‘Long-term care’ includes the need for both
custodial care and skilled-nursing care. ‘Skilled-nursing care’ does NOT
include the need for custodial care. That’s the issue that creates the
Long Term Nightmare.
For instance, if someone needs assistance because
they can’t bathe, cook or dress themselves, they need custodial care. If
someone has dementia and needs to be supervised, that is referred to as
custodial care. If someone needs intravenous fluids (IV), they need
skilled-nursing care because it cannot be administered by anyone else.
Custodial care can be done by a family member. Skilled-nursing care is
provided by licensed nurses.
The assistance provided by Medicare to those over
65 is only for skilled-nursing care. Typically this care occurs in a
nursing home while the patient recovers from a surgery or illness that
required at least a 3-day hospital stay. If the hospital stay didn’t
occur, Medicare won’t pay for it. Even then, Medicare will only cover
roughly 100 days.
Medicare does NOT provide any coverage when the
assistance needed is custodial. Those costs must be paid entirely by the
individual and/or their family. Medicare will not pay for stays in an
assisted-living facility.
For the impoverished who qualify, Medicaid will
cover nursing home costs. But the number of Medicaid beds is limited and
recipients may face long waiting periods to get into such a facility.
Sometimes Medicaid will cover assisted living
facilities and home health care, which includes custodial care. But
these benefits are harder to receive reimbursement for. Rules and
benefits vary from state to state. The bottom line for those depending
on Medicaid is that you will be left with few options and limited care.
The greatest need for long-term care as we age is
often custodial in nature.
At some point, we are all likely to need help with
our medications, cooking and cleaning. Worse, we may be suffering from
the chronic effects of a long term illness. Even though we may not be
able to care for ourselves as a result,
Medicare will not pay for any help unless it
requires a skilled nurse. They will, however, cover hospice care for
terminally ill patients.
Many families find themselves caught in the
nightmare of having to provide the care that isn’t covered by insurance
or the government. This problem will not go away - the government is
likely to cover even less care in the future. Take action now.
In a future article, I will talk about the
long-term care coverage provided by Medicaid and what is required to
qualify for it. Then I will outline steps you can take to avoid a
Long-Term Nightmare.
If you have a specific question or would like more
information give me a call toll-free at 1-877-827-1463 or go to
www.guardingyourwealth.com. You can also reach me by email at
jeff@guardingyourwealth.com.
About Guarding Your Wealth:
“Guarding Your Wealth” is a
nationally syndicated weekly personal finance column written by Jeffrey
D. Voudrie, CFP. Mr. Voudrie is the President of Legacy Planning Group,
a private wealth management firm that employs sophisticated proprietary
strategies designed to protect and grow its clients' investments. Please
visit his website,
www.guardingyourwealth.com to read past articles under the Guarding
Your Wealth Article Archive.
Guarding Your Wealth for Seniors are
a collection of columns by Voudrie that deal with issues of particular
interest to senior citizens. Click here
for all columns.
In addition to being a nationally
syndicated columnist and Certified Financial Planning Practitioner, Mr.
Voudrie provides personal, private money management services to clients
nationwide.
Looking for an energetic expert who
is passionate about financial and wealth management? Mr. Voudrie is an
excellent speaker who will excite and inspire your audience. Mr. Voudrie
is available for a limited number of speaking engagements, television
appearances and radio talk shows. For booking information, email e-mail
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