Two more Wisconsin nursing homes closing, both citing Medicaid reimbursement problems

Two more Wisconsin nursing homes closing, both citing Medicaid reimbursement problems
Two more Wisconsin nursing homes closing, both citing Medicaid reimbursement problems

Two more Wisconsin nursing homes closing, both citing Medicaid reimbursement problems!

From McKnight’s Long-Term Care News

You’ve heard me say it before, if your plan is Medicaid to pay for your long term care (LTC), chance are good you will find no room at the inn with no alternatives except moving in with your children whether they can provide the care needed or not!

In the past year, 16 LTC facilities have closed their doors due to taking in too many people who ended up on Medicaid.  Medicaid pays far less than the cost to care for you.

If you lose money on every customer, can you make it up with volume?

Of course you can’t.  Push is coming to shove.  It used to be people bought LTC insurance to keep from going broke and ending up on Medicaid.  Today people buy LTC insurance to ensure there will be a place that will accept them when they need care.

Most assisted living facilities will not let you move in unless you can prove to them that you have the finances to pay for at least 2 years of care.  Can you?  Do you feel lucky today?

I can, with a LTC insurance policy I bought long ago when I was younger, healthier, and better looking.  I could never buy one today, despite the fact that I took my daughter to the UP for skiing yesterday (written 3-29-2018).  I am active, travel, work, but I have arthritis and diabetes.  Diabetics are 65% more likely to end up with Alzheimer’s.  If you are diabetic, you may not be able to buy LTC insurance anymore.  Yes, I have alternatives, but they are far more expensive.

People ask me “At what age should I buy LTC insurance”?  My reply is 6 months before you go in for that annual checkup, feeling fine, nothing is wrong, but after reviewing the standard blood tests your doctor says “I’m writing a prescription for (insert drug name here)” and suddenly you cannot get coverage.  Don’t be that person who waits too long.

Where do you get LTC insurance?  You can go to your car insurance agent.  You can go to your life insurance agent.  You can go to your financial planner.  You can go to your podiatrist to see about a toothache too.  I have been a LTC planner for 25 years.

When the proper things are taken into consideration, most people do not need as much of it as they first imagine.  When the proper company and policy for your age and health are taken into consideration, the cost will be less.  Go see someone who knows the industry, has the guidance you need and the best (not just one) policy for you.

Call www.TheLongTermCareGuy.com at (920) 884-3030 and schedule a time to investigate, for you.

Will You be Among the Many Not Welcome at Assisted Living Facilities?

Will You be Among the Many Not Welcome at Assisted Living Facilities
Will You be Among the Many Not Welcome at Assisted Living Facilities

Not Welcome at Assisted Living Facilities? Why?

So why would you or your loved ones be Not Welcome at Assisted Living Facilities? It’s not personal about you or your looks, it’s your ability to pay for the care they provide.  Most Americans cannot afford to pay $5000 a month for hands on care or $8000 a month for dementia care (dementia care is half of all Long-Term Care).

A lot of people tell me that somebody has to take care of you.  Yes, that is true, but it won’t be the kind of care or the location of care you might want.

A welfare program called Medicaid pays for about half of all Long-Term Care (LTC) in America.  It pays the providers much less than it costs to provide that care.

Can you lose money on every client and make it up with volume?

Neither can the care providers.  Thus they must cost shift the bills to those who can pay their own way, and limit how many people on Medicaid they allow in.  They can (they must) limit how many people on Medicaid they lose money on, in order to keep the doors open.  Thus they can, and do, say you’re Not Welcome at Assisted Living Facilities at the door to people who are on or qualified for Medicaid.  Many will not let you in unless you can prove the ability to pay for your care for two years.

Thus you keep looking for room at the inn.  Maybe it’s a county home, there are many of these scattered all over Wisconsin.  Most are losing money and the county taxpayers are supporting their losses.  Those taxpayers want to close the facility to eliminate the financial drain and the resulting property tax increases.

Nursing homes will also accept you on Medicaid, but several recent newspaper articles talked of how we are losing nursing homes in Wisconsin.  Nursing homes make their money on the short term rehab they provide to people who transferred there after a hospital stay to finish recovering.  Medicare (health insurance) pays them handsomely for this care.  Most people living in a nursing home quickly go broke and end up on Medicaid.

If nursing homes want the good paying rehab business, they have to take the Medicaid losses.  They will also take you on Medicaid, but do you really want to live there, simply because you are broke?

So what is the answer?  Be rich and able to pay for whatever LTC you will need, or do like we do to protect our cars and homes in case of accidents or storms – buy insurance.  LTC insurance pays for care at home, adult day care, assisted living type facilities and nursing homes.  But in most cases it is what keeps you OUT of a nursing home!

You cannot buy LTC insurance once your health record shows evidence of things that might cause you to need care.  Forties and fifties is the time to get this, but a few people in their sixties in excellent health (no diabetes, arthritis, back trouble, osteoporosis, etc.) can still qualify, but it is more expensive then.

I have this insurance and will be able to pay for whatever care I might someday need.  Every facility in town wants me – and I’m not that good looking.

What if I never need care?  I could die peacefully in my sleep at 99.  Then the insurance will be as wasted as all those years you paid for car or homeowners insurance and did not have an accident or a tornado destroy your home.

By the way, the odds of an auto accident this year are 1 in 240.  A homeowners insurance claim is 1 in 1800.  But Health and Human Services (HHS) in Washington says that once we reach age 65, there is a 70% chance we will need some LTC.

Do you feel lucky today?  If not, contact us to investigate this together.  Don’t be one of those families burdened when you’re Not Welcome at Assisted Living Facilities.  Most people do not need as much LTC insurance as they might think.  Many things need to be taken into consideration and we have been doing nothing but LTC planning for 25 years now.  We know what to ask, and can even help those who did not plan ahead but now need care.

Visit us at www.TheLongTermCareGuy.com

Call (920) 884-3030 to schedule a free consultation!

Wisconsin Faces Critical Shortage of Care Workers for Disabled & Elderly

Wisconsin Faces Critical Shortage of Care Workers for Disabled & Elderly!
Wisconsin Faces Critical Shortage of Care Workers for Disabled & Elderly.

Wisconsin Faces Critical Shortage of Care Workers for Disabled & Elderly.

MADISON – Jessica Nell relies on a stranger to help her get in and out of bed every day.  If no one shows up to help her, the 29-year-old Green Bay resident is left immobile — potentially for hours.  Nell, who has cerebral palsy and uses a motorized wheelchair, is one of thousands of Wisconsin residents who need personal care and home care workers to perform daily tasks they can’t do on their own. But finding a worker to come to an individual’s home has become increasingly difficult in Wisconsin due to a lack of available workers.  “There’s constant issues. People not showing up, people showing up at the wrong time,” Nell said. “It’s endless.”

The lack of workers has reached crisis levels in Wisconsin and across the nation, according to long-term care and home care organizations. And Gov. Scott Walker has recommended a 2% increase for each of the next two years, but advocates say more is needed.  A recent survey by disability advocates found that 85% of disabled people and older adults didn’t have enough workers to cover all their shifts. More than 40% of the 500 people surveyed couldn’t find a worker seven or more times a month, according to the review by Survival Coalition, a collection of disability organizations. 

Advocates and health associations have pinpointed low wages without benefits as the cause of the shortage. There’s also an overall lack of appreciation for workers who fill these demanding jobs, they say, leading workers to not view the job as a career.

The workers help with showering, getting dressed, cooking, cleaning, driving and other tasks. Often they are paid through Medicaid, a collection of health care programs funded by the state and federal governments.  Personal care workers typically get paid $10 to $11 an hour, usually without health care benefits, to perform the challenging job of lifting people in and out of bed and helping them with toileting needs, according to Kevin Fech, a team manager with a state personal care program.  “These are the hardest working people and they get paid less than what people make at a fast-food restaurant,” Nell said.

Agencies that manage these workers sometimes lose over half their staff in a year, experiencing a turnover rate of 50%, according to the Wisconsin Personal Services Association, which represents personal care providers.  At the Arc of Fond du Lac — one of the state’s largest care providers for people with developmental and intellectual disabilities — the turnover rate has increased from 5% to 25% in recent years.  David Boelter, executive director at the Arc, has taken steps to retain and recruit high-quality workers in the midst of the shortage. The Arc offers employee referral rewards, sign-on bonuses and health care benefits.  “The more turnover we have on our staff the worse effect it has on our clients,” Boelter said.

Some people employ a friend or relative to provide services.  Fech gets $10 an hour to care for Tyler, his 19-year-old son who has autism, Down syndrome and is nonverbal.

Fech believes it is the best option to provide the care for his son himself because it would be challenging to find a care worker to come at 6 a.m. to get Tyler ready for school at $10 an hour. If a worker was late or didn’t show up, Tyler wouldn’t get to school on time.  Personal hygiene suffers when care workers don’t show up.  “My son doesn’t have the cognitive ability to brush his teeth,” Fech said. “If we weren’t there to help him  brush his teeth … then (he) would start having gum disease and start having abscessed teeth.”

Increase possible

State Rep. Jimmy Anderson (D-Fitchburg) said he once talked to a woman with multiple sclerosis who had to decide if she wanted to shower or eat each day during her Medicaid-funded hour of care because of state cutbacks.  “I think it’s inhumane. It’s damn near disgusting,” Anderson said.  Anderson became paralyzed from the chest down after a serious car accident. He is not on Medicaid, so he pays out of pocket for home health care workers.

Under current law, service providers, like the Arc, get reimbursed through Medicaid at a rate of $16.08 per hour. Walker’s proposed 2% budget increase would raise the rate to $16.40 in 2017-’18 and $16.73 in 2018-’19.  Advocates, although grateful for any increase at all, say the bump is not enough to make any real change. A better rate increase would be around 15%, they say.  “It’s a step in the right direction but still very inadequate,” Boelter said.

Lillian Price, Milwaukee Journal Sentinel  July 21, 20178


Note from TheLongTermCareGuy.com:

It’s only going to get worse.  Medicaid cannot pay more, there are not enough workers, and those who can pay more for care will get care.  I have long-term care insurance, do you?  Get it while healthy – in your fifties is best.  When you have the income or insurance to pay for care, you can pay enough to get good care.  You wouldn’t go without car insurance, why go without this?  HHS says that by 65 we have a 70% chance of needing long-term care.  Do you want to be against those odds?  Call us to investigate options (920) 884-3030

 

Annie’s Mailbox on Families Caring for Parents

Annie’s Mailbox on Families Caring for Parents!
Annie’s Mailbox on Families Caring for Parents

Annie’s Mailbox on Families Caring for Parents

Caregiver deserves a break (Annie’s Mailbox)

Dear Annie:  I am 63, and I help daily with my 94-year-old mother, who lives by herself. I run errands, and I keep her yard nice.  I have a brother and sister who live out of state.  They come back to visit from time to time.  When they do visit, they expect me to entertain them.  I feel that because they are staying with her, it is my time to take a break.  They don’t seem to realize the pressures I go through every day, when I wonder whether she will answer the door or I will find her on the floor.  Am I being unreasonable to be able to “escape” mentally and physically for a couple of days whenever it is convenient for them to “escape” their out-of-state lives and visit?

–Needing a break in Pensacola

Dear Needing a Break:  It is absolutely reasonable – and smart – that you want some time alone and away from the stresses of caretaking.  To properly take care of anyone, you first need to take care of yourself.  Look into hiring some professional help.  Many insurances, including Medicare and Medicaid, include some form of hospice coverage.  Visit http://hospicefoundation.org.  As for your siblings, how they want to treat our mother is their choice.

Don’t let this become your family legacy, children squabbling over who needs to be caring for mom or dad.  Your children may need to work for income at the time you need someone’s help with day to day activities.

That is why Long-Term Care insurance is so necessary, and must be purchased while you are healthy enough to get it.  Why be a burden on your family when you can afford to hire the in-home or facility care you want and need when your health changes.

Long-Term Care insurance is not scary or expensive – when it is chosen appropriately.  We have over 24 years experience guiding families into the best fitting coverage, this is not an also have product for us, it’s all we do.  Investigate with experts, call TheLongTermCareGuy.com at (920) 884-3030 to schedule a time to investigate together.

Helping Solve Problems Over the Telephone

Helping Solve Problems Over the Telephone!
Helping Solve Problems Over the Telephone

Helping Solve Problems Over the Telephone

It’s been another fun day helping folks solve problems with Long Term Care.  The first call came in early this morning.  The man was referred to me by an attorney.  His father is in an assisted living facility, and has been spending down his life’s savings.  With very little left, the facility suggested he find a way to prepay his father’s final funeral expenses.

The attorney he first spoke with referred him here, to TheLongTermCareGuy.  He had questions on disposing of an old vehicle his father owned (which would cause a problem in qualifying for Medicaid), and in how Medicare and his father’s supplement would work.

Once all his questions were answered and he understood the process of getting his father on Medicaid, we determined how much money was left to prepay for funeral expenses in a Medicaid allowed irrevocable burial trust.  I was able to fill out the paperwork for this and email it to him for signatures and a check.  Problems solved!

The next call was from someone who had recovered from a significant illness and had been declined for Long Term Care insurance.  It had been suggested they contact us to see if there was any possibility of coverage.  After putting them on hold and calling numerous underwriters, I found one company that would consider them for such insurance.  We went on to fill out the application over the phone and I mailed it to them for signatures and a check to apply.

The next call (it really was a fun day, solving problems is fun) was from a client who’s Long Term Care insurance had stopped paying benefits.  This turned out to be an easy one as the facility she was in had filled out a questionnaire incorrectly.  Once proof was sent of the need for ongoing care, the payments were quickly restored.

Lastly came a call from someone already in a Long Term Care facility wanting to know if they could buy Long Term Care insurance.  Just like car insurance, you need it in place before the claim.  I inquired how close their income came to paying the monthly cost of care, and what the shortfall was each month that would be coming out of savings.  Rather than spend down their savings to zero, and applying for Medicaid, we looked at a very unusual type of annuity that takes your actual health ( and thus shortened life expectancy) into consideration in determining how much it will cost to produce an income of that much per month – for life.

With the (poor) health of the person taken into account, and the much shorter than average life expectancy this annuity would have to pay out over, we came up with a solution of using just a portion of the savings available to produce that life income.  This gives them a monthly check for life, so they can pay the bills and never have to spend down to Medicaid impoverishment.  It also leaves a good amount of savings left over as an inheritance for the family.

I don’t always get so many calls for help in one day, but when you get to solve problems for so many, in one day, it really is fun and makes the work we do so rewarding.

If you have questions or problems involving Long Term Care, or want to plan ahead for the least costly way to handle this when your health changes, give us a call at www.TheLongTermCareGuy.com (920) 884-3030 or (800) 219-9203

A Roommate – For Life – Not Of Your Choosing

A Roommate – For Life – Not Of Your Choosing!
A Roommate – For Life – Not Of Your Choosing

A Roommate – For Life – Not Of Your Choosing

Assisted living facilities are typically very nice places.  Many have pools or hot tubs, entertainment, exercise classes, and most now even feature a pub and free drinks (within limits).  You have your own “apartment” sometimes with two bedrooms, a kitchenette, bathroom and no roommate.

Until,

You run out of ability to pay and need to apply for Medicaid.  I am seeing assisted living type facilities now moving people on Medicaid into shared rooms.  Your new roommate, for life, is hopefully a good fit for you because everything is now shared.

Many other assisted living facilities do not accept Medicaid at all.  Before you can enter such a facility you must sign that when you run out of the ability to pay – you will leave.

Facilities can say no to Medicaid residents at the door.  They cannot force you to leave later unless you agreed and signed BEFORE YOU ENTERED saying you would leave when out of money.

This is unique to assisted living facilities and does not, generally, apply to nursing homes.  Most nursing homes accept Medicare’s short term recovery care patients (their bread and butter) and thus must accept Medicaid as well or they cannot get those Medicare recovery patients.  If you take one, you must take the other.  Since assisted living facilities cannot take Medicare recovery patients, they can say no to Medicaid residents.

Nursing homes can and often do move you into a shared room though when you run out of ability to pay for the care you need and apply for Medicaid.

How does one avoid this?  Simply be able to pay for the care you need when your health changes.  No, you do not need to be wealthy, just do like you’ve done all your life with your car and home, have car insurance, home insurance, and for later in life – Long Term Care insurance.

There are drivers who go without car insurance.  There are some people who go without Long Term Care insurance.  In either case, when a problem occurs and you cannot pay for what is needed, there is big trouble.  The car accident without car insurance may cause your drivers license to be suspended and you may be sued.  In Long Term Care when you can’t pay the bill, you get what you are given on Medicaid – a welfare program for the impoverished.

It’s your choice.  Why end up impoverished and dependent on government handouts when you could have purchased Long Term Care insurance and can choose where and how you are cared for.  You can afford caregivers coming into your home.  You can afford caregivers in the facility of your choosing and the “apartment” of your choice.

You cannot purchase car insurance after the accident.  You cannot purchase Long Term Care insurance once your health is such that you may need care in the future.  By age 60 nearly a third of us can no longer qualify to purchase this insurance.

At least investigate it.  And do so with someone familiar with local prices, how care is used, the local providers etc.  At www.TheLongTermCareGuy.com we have 24 years experience in the financing of Long Term Care.  Give us a call at (920) 884-3030 and let’s investigate together.

More Than Half of 2016 Long Term Care Insurance Claims Were For Home Care

More Than Half of 2016 Long Term Care Insurance Claims Were For Home Care!
More Than Half of 2016 Long Term Care Insurance Claims Were For Home Care.

More Than Half of 2016 Long Term Care Insurance Claims Were For Home Care.

The American Association for Long Term Care insurance (LTCi) just released information on 2016 claims on LTCi.  More than half of all claims were for care at home, and 56% of claims ended at home.

This means that more than half of all LTC received and paid for by LTC insurance were for care in our homes.  “People want to be in their home with family and loved ones, and having some long-term-care insurance in place can help pay for the cost of home care services,” said Jesse Slome, the group’s director.

For most people the burden on family is simply too great to make receiving care at home provided by family work.  Children and grandchildren need income to maintain their homes and support their families.  Caregiving can be a 24 hour job, and even when it is part time, it is constant part time when care is required.  That said, a large amount of care provided for loved ones is born by families, and at a great emotional, physical and financial burden.

LTC insurance can provide for regular help coming into the home so that family can fill in the needed times and enjoy their loved ones, not feel burdened by the work required.  Paid caregivers show up on schedule, and substitutes are provided by the agency for sick leave and vacations.  Your loved ones will still need you and your assistance, but not full time.

On another note, HealthDay just reported that the risk of death among people over age 60 nearly tripled during the first year following a hip fracture.  However, hip fractures were also still linked to a nearly twofold increased risk of dying eight years or more after the injury.  Falls are a dangerous thing for people over the age of 60.  Being home alone while caregivers are at work increases the risk of falls.

Many people want to age in place, in their homes, where they feel comfortable.  The home may not always be the best place but the need for care occurs whether we are at home or in a LTC facility.  In either situation the costs are usually higher than most people anticipate.  Savings can be decimated and then try to find help that will care for you at the woefully low Medicaid reimbursement rates.

If you are near 50, and in relatively good health, why not consider LTC insurance now – while it may still be available to you?  By age 60 nearly a third of us can no longer purchase this coverage.  Once purchased, the benefits start increasing automatically every year to keep up with the increasing costs of care.  The longer you wait to purchase, the more of it you will need – the more it will cost – and the chances of qualifying for it go down.  Call www.TheLongTermCareGuy.com at (920) 884-3030 to investigate with an expert in this area.  You may be pleasantly surprised that when chosen appropriately with proper guidance, it can be affordable for most people.

Long Term Care costs are increasing regularly!

Long Term Care costs are increasing regularly!
Long Term Care costs are increasing regularly!

Long Term Care costs are increasing regularly!

Inflation may seem low, but there are several different rates, depending on what costs are being tracked. Gasoline has gone down in cost, food is going up in cost, the CPI (consumer price index) is going up slowly, and the costs of Long-Term Care services are going up faster.

Long-Term Care (LTC) costs have been going up 5% to 6% historically. The past 8-10 years the increases have been less due to the stagnant economy. Some people will take minimum wage jobs when nothing else is available. Most LTC costs are bricks and mortar as well as minimum wage labor.

There are a lot of workers at any LTC facility. Three shifts are needed to provide 24 hour awake care for the residents. Minimum wages are going up nationwide, in many place doubling or more. McDonald’s workers are picketing for $15.00 per hour minimum wages.

Now consider that purchasing LTC insurance in your 50’s means it may not be used for 30-35 years. That is why an automatic, built in inflation factor of 5% compound is absolutely necessary. Buying this type of insurance without that option will very possibly result in a benefit that is woefully inadequate when care is needed. This results in spending your savings down (which you were trying to avoid) to the Medicaid impoverishment level and ending up on a government handout.

At 5% compound, a bill costing $5000/month today will be $10,000 a month in 15 years, and $20,000 a month in 30 years. These numbers seem quite high, so let’s go back and see what history tells us has actually occurred. Thirty years ago the median price of a house was $80,300. Average monthly rent was $385. Potatoes were 5 pounds for a dollar, and a new Ford Mustang was $7452.

Yes, we have had inflation, and it will get worse. 10,000 baby boomers turn 65 every day in America. Very few of us had 12 children. There are simply not enough workers to care for all of us as we age and need assistance. What happens in any industry when not enough workers apply for the open jobs? Wages go up. I am getting direct mail pieces at my home addressed to resident asking me to please come work for an assisted living facility – no experience needed, they will provide training.
Thus, if you are considering LTC insurance – investigate with an expert in this field. Many seemingly unrelated thoughts need to be taken into consideration in order to choose appropriate coverage.

At TheLongTermCareGuy.com we have a combined 32 years of experience in helping people with LTC planning, 8 years for Kathy and 24 years for Romeo. Many attorneys and financial planners refer their clients to us for our expertise in this field.

If you want expert advice and appropriate suggestions for your situation, contact www.TheLongTermCareGuy.com at (920) 884-3030 or (800) 219-9203 to schedule a time to investigate.

Six Long Term Care Facilities in N. E. Wisconsin are Declining New Residents or Closing Wings

Six Long Term Care Facilities in N. E. Wisconsin are Declining New Residents or Closing Wings!

carr_resident_apartmentI just learned this recently from a social worker who works in Door and Kewaunee Counties. At first blush this seems odd with the advancing age of baby boomers needing care. In Green Bay, WI, at least three new Long Term Care facilities have been built every year for the past 10 years. They seem to have little difficulty in filling them.

It seems the problem is not in filling them, but in staffing them. Yes, Door County Wisconsin is a resort area that for decades has struggled to find seasonal workers for the various tourist resorts. But these are full time, year round jobs that are just not fillable.

I’ve mentioned in previous posts that I have received bulk mail in Green Bay, WI asking me to please come work in a LTC facility, no experience necessary, they will provide all training. Refusing new residents and closing wings is an escalation of this problem.

Most LTC workers earn minimum wage or close to that. The nurses are busy with required paperwork. What is happening to minimum wage that nobody will come work for it? This is not a political comment, but rather simply notice of what is happening demographically in America.

We didn’t have enough kids. Nobody has had a dozen in many years. We are getting older and have fewer young ones who can do the work to care for us. Minimum wage is difficult to live on and in many parts of the country minimum wage is doubling. MacDonald’s workers are striking for $15 per hour.

Couple that with the majority of adults needing care who are unable to pay for that care, running out of money to pay for it, and falling back on Medicaid, a welfare program from state and federal governments that will pay for it. Medicaid pays much less than the cost to care for people, thus care providers lose money on it’s woeful reimbursement.

Can you lose money on every customer and make it up on volume?

Of course not. Can you raise wages to attract the workers you need if you are losing money on what you receive for the care you provide? Of course not. What will it take to solve this problem? The answer is quite simple – We simply cannot depend on a government welfare program to pay for the care we need as we age. We need to be able to pay for our care ourselves.

We cannot afford a car accident without car insurance, and most of us cannot afford Long Term Care without LTC insurance. It’s as simple as that. Do you think the insurance is too expensive? Have you ever investigated it? Why not? Are you hoping this won’t happen to you? Health and Human Services (HHS) says that by the time we reach age 65, 70% of us will need some Long Term Care. Is that statistic worth betting against?

The need for caregivers is increasing. Two years ago the New York Times predicted that by 2020 more Americans will be working as caregivers than work in retail. Why? Because more and more baby boomers will be getting old enough and frail enough to require Long Term Care.

I can pay for the care I need with my LTC insurance I bought over 15 years ago – when I was younger, healthier, and it cost less. Will you wait until it’s too late? Be age 60, fully 1/4 of us are not healthy enough to purchase this coverage.

If you want to have choices about how and where you are cared for when your health changes, prepare NOW to be able to pay for that care. Those with the ability to pay for what they need will always be able to find providers. Those who cannot, will get what’s left.

Contact www.TheLongTermCareGuy.com at 884-3030 or (800) 219-9203 to investigate with a trained professional, someone who has been helping people plan for LTC for over 23 years. We work all over the state of Wisconsin.

Will Your Empty Nest Sadness be Solved By Mom Moving In?

Will Your Empty Nest Sadness be Solved By Mom Moving In?

grandmaI listened to a public radio program this morning about empty nesters and what they do to fill the void when children finally leave the nest. A number of callers spoke of how a parent moved in when they could no longer function at home on their own anymore.

Having a parent move in when they need care may sound cozy, and for some families it is a wonderful experience. Mom may be a pleasure to host, she may help with gardening, cleaning house, and perhaps even assist with cooking.

On the other hand, she may eventually need help with bathing, toileting, medication management, and if there is any dementia, a host of other cares that will become necessary.

Sundowning is one concern several callers mentioned. This is when the dementia is worse in late afternoon and evening as logic and reasoning disappear. Getting someone calmed down and to bed can be as difficult with an adult as it was with children. We all remember driving a child around in the car until they fell asleep, and this may now become necessary again, regardless how much gasoline costs.

When someone you love and care about strongly resists bathing and does not want to be in water it can be quite frustrating. Worrying about their falling when you are not watching them closely prevents any chance of your relaxing. This can trap you in your own home as a 24 hour a day, unpaid caregiver.

Sometimes Mom or Dad have funds and can compensate you for your work as a caregiver. One of my clients recently contacted me with questions on a problem this caused.
His mother had lived with them for 18 months, and they provided all of her care in exchange for payment of $3000 per month. This worked well until her care became simply too strenuous for the two of them to handle. At that point they moved Mom to an assisted living facility where the 24 hour caregivers could handle all her needs.

About a year later Mom’s savings ran out and she needed to apply to Medicaid to fund her care. Medicaid requires complete impoverishment down to $2000 of assets and typically any life insurance must be cashed in as well. Medicaid also closely checks financial history to determine if any gifting was done in the 5 years prior to applying for Medicaid. Any gifts given during this time period are totaled and divided by the average cost of a nursing home to determine how long you are ineligible for Medicaid once you are down to $2000.
In this case, without a signed, dated and notarized work contract between Mom and her son and his wife, every check of $3000 for care was counted as a gift and Mom became ineligible for Medicaid. Son now digs into his retirement savings to pay back Mom the money she paid them for care. This of course triggers additional income taxes for son as retirement funds are withdrawn.

While it is a loving gesture to have Mom or Dad move in with adult children when care is needed, you need to ask yourself, are you emotionally and physically able to undertake what often becomes full-time 24 hour per day care?

For some the answer is yes, and becomes a wonderful experience. For many others what started as a new adventure becomes tedium and a physically impossible job better suited to professionals.

Your parents may not have the money to pay for care, nor the health to purchase Long-Term Care insurance. Let this be a lesson to those of us who do have the health to purchase this insurance. The premium is far smaller than the cost of the care it pays for.
If you do decide to investigate Long-Term Care insurance, do so with someone who understands how and where this care is provided, as well as accurate current costs. Bear in mind that when one can no longer use the fun toys and travel, a portion of income can go towards the cost of care. Interest on savings can help as well without depleting principal. Thus most people need less of the insurance than they might first anticipate.

While you might hope that this will never happen to you, Health and Human Services tells us that by the time we reach age 65, fully 70% of us will need Long Term Care.
At TheLongTermCareGuy.com we have over 23 years experience in guiding people with this insurance. Let us help you investigate, every situation is unique. Call us at (920) 884-3030 or (800) 219-9203 or look us up online at www.TheLongTermCareGuy.com