Home Care
Family Care Givers are Struggling
Family care givers are struggling and feel undervalued, according to an article published on the website The Street. It reports on a study conducted in September 2023 by Wakefield Research and sponsored by Otuska, a pharmaceutical company. It outlines the toll that caretaking can take on family members. To read the article, click here .
Have you thought about how you will arrange for assistance when you need it? Contact Romeo Raabe, the Long-Term Care Guy to discuss alternatives. There are solutions for almost every situation. Call 920-362-7663 or email [email protected] .
Constant drumbeat of costs often overwhelms caregivers
An article in the Wall Street Journal details how an AARP caregiving expert ends up broke!
An article in the Wall Street Journal details how an AARP caregiving expert ends up broke and $120,000 in debt trying to care for her parents in need of long-term care. (“Caring for Older Relatives is So Expensive That Even AARP’s Expert Filed For Bankruptcy”, Wall Street Journal, 2-22-22). The article reads, “On average, caregivers spend 26% of their personal income on caregiving expenses, according to a 2021 AARP study.”
Caregiving is becoming more expensive because people are living longer with more complicated medical needs, and hiring help costs more.
According to a leading long term care insurance company, the median annual cost of in-home care rose to $54,912 in 2020–an 18.5% increase from 2016.
The majority of Americans cannot afford to cover the costs of long-term care out of income and savings without purchasing insurance for these costs. Relying on family can bankrupt family members, leaving them with no way to cover their own retirement.
Many people wrongly assume Medicare will cover long-term care costs and are shocked when they learn they are personally liable for these bills. Medicaid, a welfare program, will take over but only once you have spent down your own assets to impoverishment. Any gifts given in the 5 years prior to Medicaid will make you ineligible for even that.
Once care is needed, it is too late to qualify for long-term care insurance– it must be in place while one is still healthy enough. Costs rise each year you wait, so investigating and purchasing at younger ages makes it more affordable.
Getting advice from an expert who understands long-term care and can appropriately size coverage can make this insurance affordable.
Contact Romeo Raabe to Talk to An Expert
Phone: 920-884-3030
Email: [email protected]
Website: www.TheLongTermCareGuy.com
Family-Provided Care Can Work–Sometimes
Family-Provided Care Can Work–Sometimes
The September, 2021 issue of the journal Health Affairs features a study that family-provided care (spouse or adult children) for dementia greatly diminishes the chances that the individual will need to enter a nursing home. However, full time caregiving will burn out the support team. Family simply cannot be expected to provide 24-7 care without help.
That is why I offer several home care policies that will pay for caregivers to come into the home to provide that care, while giving family members some relief. These home care policies are much less expensive and far more easily obtained – despite health problems already on record – than traditional long term care insurance policies. However, they must still be obtained before the care becomes necessary.
You can easily burn out your loved ones with family Family-Provided Care
Don’t burn out your family or other loved ones by becoming a total burden on them. They will surely help, but give them a break and provide a helping hand. Investigate now, while this help is available.
Contact Romeo Raabe www.TheLongTermCareGuy.com at 920-884-3030 to investigate options.
It’s the Holidays, Let’s Talk
How long has it been since you have seen all of the family? How are they doing? Perhaps not as well as last year? Perhaps it’s time to talk.
It’s the holidays, this is the time of year when many families realize a family member is not doing as well as s(he) has in the past, and may need some help. Perhaps s(he) just need help with lawn care or snow removal. It might be the house is not as neat as it always was, or perhaps bills and paperwork are being neglected. Maybe it’s time to talk.
It’s the Holidays, many families realize a family member may need some help
This is not something we look forward to, and it seems the job more often than not falls to the women in the family. Women seem to be overwhelmingly tasked with caregiving. Employers know that the holidays are when female employees often request leave to deal with family issues, making caregiving a workplace issue as well. Wages are sacrificed and productivity falls; seasonal demands may exacerbate the problem. An article in the AARP publication estimated that in 2009, there were 66 million unpaid caregivers in the US, and the number is growing. Unpaid caregivers average 20 hours of caregiving a week.
This caregiving is not without cost. Caregiving takes a toll on the health of caregivers which lingers long after the death of the family member cared for. It also costs real money. In addition to the career and income sacrifices, many caregivers contribute significant dollars while assisting loved ones.
By having a Long-Term Care (LTC) discussion, plans can be made to share the responsibilities. Other family members may discover they can contribute time and resources to help. Perhaps professional caregiving either at home or in a facility is required and planning – even at the last minute – can provide solutions, rather than simply spending available money and hoping to qualify for government assistance. Once financing strategies are discovered, more planning options may become available.
It is the Holidays, family time, perhaps it’s time to talk
The holidays can be an appropriate time to discuss these issues because the family member’s needs might be more apparent. Any time of year can be a good time to consider how the care you may someday need will impact your family as well. Are you prepared to handle your long-term care needs? If you might pay for care, where will the money come from? What will be left for family after your care needs are over? Perhaps you might investigate LTC insurance while you are still healthy so that funding is not an issue when you need care. LTC insurance pays for care in your home, day care facilities, assisted living facilities commonly called CBRF’s or RCAC’s, and traditional nursing homes. Pennies on the dollar now can save hundreds of thousands of dollars later.
Have you ever wondered….
Do you have questions about the cost of long term care?
Do you have questions about the cost of long term care?
Are your clients confused about the many options, how to choose coverage, or if it’s necessary for them?
I’m Romeo Raabe LUTCF, LTCP and I’m known as The Long Term Care Guy–in fact, my website is www.TheLongTermCareGuy.com and I work exclusively on Long Term Care (LTC) issues. Some examples include how to get the most from LTC insurance, how to start a claim, what to do if care is needed and there is no insurance—and much more!
I also offer insurance for LTC and have options most financial professionals are not even aware of. For example, this week I put coverage in place for a couple ages 87 and 84 for less than $90/month a piece.
Even if someone is in care – even if already on Medicaid – I may still be able to help. If you or your clients have questions, feel free to call me at (920) 884-3030. I am here to help anyone dealing with or concerned about LTC.
Contact ROMEO RAABE about the cost of long term care!
PS: There can be huge differences in LTC insurance policies—I can help you understand the differences, and probably even set you up with other strategies most other advisors don’t know about!
Aging in Place: What Every Senior Should Know
Introduction: Aging in America
By 2030 every Baby Boomer will be over 65, and will make up 21 percent of the population. And by 2060, almost 25 percent of Americans will be 65 and older. The aging population will have many far-reaching implications for American society, and how to care for older citizens is one of the most important to plan for and consider now.
Until recently, senior citizens would typically go into an assisted living facility when they became too infirm to care for themselves or an aging partner. But there’s a growing trend for older Americans to stay in their homes throughout the aging process, known as “aging in place.”
There are various reasons for this trend: many people want to stay independent for as long as possible, remain near friends, and stay close to their community. As assisted living costs mount, it can also make financial sense to remain at home as long as possible to delay those costs and save for future health care needs. The Genworth Cost of Care Survey 2018 says that the national median cost for assisted living is $48,000 a year.
Not only does aging in place tend to cost less than assisted living, it’s more…
Don’t get caught in this long term care trap! Many people are.
Often agents sell policies for a cheaper price because they didn’t include the all-important automatic inflation on benefits. Don’t get caught in this long term care trap!
I am being approached by many people who purchased long-term care (LTC) insurance many years ago. They bought the LTC insurance from their life insurance agent, their financial planner, or their home insurance agent – not a specialist in LTC. These agents knew life or home owners insurance, but often just “dabbled” in long term care sales. Maybe they had just one company’s product to sell. Often, they sold the policies for a cheaper price because they didn’t include the all- important automatic inflation on benefits.
Long term care costs have been increasing more quickly than inflation, doubling almost every 15 years.
For example, a nursing home that charged $4500 a month 18 years ago, now charges over $10,000 a month. Costs may increase even more quickly in the future because labor costs are likely to increase. Since we have nearly full employment, employers may need to offer higher wages to attract the needed workers. We also hear talk about increasing the minimum wage to as much as $15 per hour, so costs could increase even faster.
If you have an older LTC insurance policy that doesn’t include inflation coverage, there still may be something that you can do. If you are considering investigating LTC insurance – do so with an expert. You need an expert who knows the costs, understands inflation and knows what the options are for people with these kinds of policies, so that the expert can help you determine how much of the bills you can pay yourself. That way, you don’t buy too much insurance.
I am an expert in long term care financing. I have been doing nothing but LTC planning and financing for over 25 years. I am happy to review your policy. I can help you if there are problems with your policy. I can help protect some of the money if LTC is needed and you have not prepared in advance. Many of my clients have been referred to me by their financial planner or their attorney. Learn more about me at www.thelongtermcareguy.com.
If you want to investigate how to deal with LTC, call (920) 884-3030. Let’s plan a time to investigate together.
Why Medicaid Long Term Care is a Bad Choice
Most assisted living facilities don’t accept Medicaid, so often Medicaid recipients needing LTC are left with only one choice—a nursing home.
Many people don’t realize that, in addition to traditional health care, Medicaid actually pays for most long-term care (LTC) in the United States. In fact, less than 40% of Medicaid dollars are used to pay for traditional health care. The small portion of Medicaid recipients (just over 20%) whose long-term care services are paid for by Medicaid use over 60% of the Medicaid budget dollars.
Most assisted living facilities don’t accept Medicaid, so often Medicaid recipients needing LTC are left with only one choice—a nursing home. This is because the federal government requires nursing homes to accept Medicaid payments if they want to accept Medicare for the rehab care they provide–and this rehab care is a major source of revenue for many nursing homes.
Wouldn’t you rather receive care, when needed, at home or in an assisted living facility rather than the nursing home? Most people would, but if you cannot afford this care – your only option might be the nursing home.
Many people mistakenly assume LTC insurance is too expensive. It can be, if it’s not chosen appropriately. Do you have a deductible on your car insurance or does it cover every last penny? Mine has a deductible, so that I pay the first part and insurance pays the expensive part.
LTC is similar. Your lifestyle will change when care is needed. You will spend less money on vehicles if you cannot drive, and spend less on golf, travel, toys, and so on. The money freed up by not spending it on these things needs to be taken into account in order to see how much care you can pay for. Then you only need enough insurance to cover the shortfall. If you have a nest egg, and do not want to use it all up, you can always take the interest it generates to help lower the insurance need even more—and never touching the principal.
Think you cannot get LTC insurance because of health? I have solutions for nearly every situation – even some for people already in care.
So, you can ignore this and hope you will not be among the 70% of us who will need care – or you can investigate options to see if this concern can be handled affordably. Your choice!
www.TheLongTermCareGuy.com Romeo Raabe is here to help, even with just advice.
Happy Holidays – How is Grandma?
How is Grandma? Are bills piling up unpaid? Is hygiene slipping? Are they not eating as well as they should, or is the house unkempt?
While your family was together at Thanksgiving, was there evidence that older family members are not taking care of themselves as well as they could be or used to?
Perhaps your loved one is not driving as much as before, or perhaps should not be driving at all. Are bills piling up unpaid? Is hygiene slipping? Are they not eating as well as they should, or is the house unkempt?
It is never easy to meet with siblings and parents to talk about how and where they will be helped with future living arrangements. Then you check into costs at senior living facilities and wonder how can this possibly work.
Hello! My name is Romeo Raabe, and I am a long-term care (LTC) planner at www.TheLongTermCareGuy.com. I help families learn how to convert homes into income to pay for LTC facilities.
I help families navigate the federal Medicaid programs that can pay for LTC. I even have ways to help protect the money for family, rather than all going toward LTC costs.
If this discussion has started, or is about to, call me at (920) 884-3030 and let’s schedule a time to visit and see if I can help you and yours. It’s never too late and you don’t know what you don’t know.
What’s it Really Like Paying for Long-Term Care
Annual cost range is $18,720 for adult day-care services to $100,375 for a private room in a nursing home!
As written by Michelle Singletary and published in the Washington Post on November 26, 2018
One of my favorite Spock quotes from the Star Trek television series is, “Live long and prosper.” Who doesn’t want a long life, right?
But what if the longevity means spending down your money for long-term care? And that’s if you’ve been prosperous and have the funds to pay a facility or home health aide to care for you.
Genworth Financial recently released its 2018 Annual Cost of Care survey and found that the annual median cost of care now ranges from $18,720 for adult day-care services to $100,375 for a private room in a nursing home.
I asked readers to share their long-term care experiences, and here’s what they had to say:
“My mother had Alzheimer’s and was in a memory unit for two years,” wrote Chris Gonzales from California. “My dad has been in assisted living for two and half years and for the last two years has needed round-the-clock care. The cost, when my mother was alive, totaled $230,000 a year. The cost to care for dad is now $170,000 a year. This is in Fort Smith, Ark. My brother and I are very lucky that our parents lived below their means, saved, and did extremely well investing their money in the market, so money has not been an issue. We are also grateful for the ladies that watch over our father and consider ourselves extremely lucky to have people we can depend on as we both live out of state.”
“I managed the care of my mother (who had Alzheimer’s disease) from 1998 through 2006,” wrote Debbie Trice of Sarasota, Fla. “Even that long ago, the cost of her care approached $100,000 annually once she had to move from an assisted-living facility to a skilled nursing facility. The actual cost of long-term care goes way beyond the monthly or daily facility charges. Personal expenses (e.g., adult diapers, toiletries, laundry, haircuts) can be significant. I saved some money by purchasing diapers from a wholesaler and toiletries from a discount store and doing mother’s laundry myself. Medications cost more for residents in long-term care, too. Some states require that all medication, including over-the-counter items like aspirin and vitamins, be specially packaged by a pharmacist in blister packs — at extra cost, of course. Staffing is a critical issue. To keep their rates competitive, many facilities limit their staffing levels to the minimum required by law. But then some patients’ needs can’t be adequately addressed. I found it necessary to hire private duty aides to supplement facility staff for a few hours each day.”
Lane Beckham of New Jersey wrote, “Four years ago my wife (then 71) suffered a fall which led to numerous complications over the next year. She has since been bedridden going from a home hospital bed to a wheelchair. She can feed herself, converse, watch television and read catalogues, but that’s about it. We’ve had a 24/7 home health care aide since April 2015 at a current cost of $215 a day or $78,475 a year. A long-term care policy kicks in $100 a day but only for 5 years of benefit days.”
“My mother died two years ago and for the last two years of her life, she had progressively worsening dementia,”
One reader wrote. “We (mainly my sister) arranged for her to be cared for at her home. The cost was running at about $85,000 a year and that was two years ago! Why? At times, she was simply too much for one person to handle, so we often needed two people to stay with her. And while we went with the better-rated agencies, we still had problems with sitters stealing, using drugs, having friends over and even taking my mother out when they needed to run errands. What a nightmare.”
David Treece, an investment adviser and financial planner based in Miami Shores, Fla., has a client with Alzheimer’s who has a Genworth long-term care insurance policy, which so far has paid out about $323,000.
“I have learned nothing will ruin a retirement plan faster than long-term care expenses,” Treece wrote. “Try having to come up with nearly a third of a million dollars like my client if you don’t have coverage. It’s just unimaginable for most people. My biggest concerns for my clients are a group I call ‘the alones.’ These are people who have no spouse, no children, no close siblings and really nobody else. They can’t even name a beneficiary let alone someone to serve as a power of attorney or health-care surrogate. This group seems to be increasing as so many people never had children, are divorced or never married, or are estranged from family. Who is even going to help them? Our society isn’t really set up for this, and I don’t see any easy solutions.”
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How comfortable do you feel paying for care out of pocket when your health changes?
- Have you thought that Long-Term Care insurance would not be needed?
- Do you plan on spending down to Medicaid, a welfare program and then search for a place that will accept it – and you?