Long Term Care Insurance
Alzheimer’s May Strike Women and Men in Different Ways
At the end of February, the website HealthDay published an article entitled “Alzheimer’s May Strike Women and Men in Different Ways”. (https://consumer.healthday.com/2-25-alzheimers-may-strike-women-men-in-different-ways-2650728831.html )
Here is a quote from that article: “The ravages of Alzheimer’s may strike later in women than men, but once it takes hold women tend to deteriorate far faster than men, according to a new study. Something known as cognitive reserve helps the aging brain function better for longer, and researchers report that women appear to have more of it than men. But once the reserve runs out, mental decline in women speeds up.”
As you read this, it would be good to ask yourself if you have your Long-Term Care (LTC) insurance yet. Once health problems are on your medical record, it may no longer be available to you.
LTC insurance is a little like car insurance – you have to have the insurance BEFORE the accident.
Is your plan to move in with your children when you need care? Have you discussed this with them? Can they care for you full time and still work to earn a living, and to raise your grandchildren?
Look at some ideas, www.TheLongTermCareGuy.com has a number of short videos. Watch them, then start planning for your care. I’m here to help.
Long-Term Care Insurance: First, You Should Find an Agent: Wall Street Journal
Wall Street Journal: First, You Should Find an “Long Term Care Insurance” Agent
I often cringe when I see a newspaper or magazine article that discusses long-term care because so many include misleading or outdated information. I was pleasantly surprised when I read this Wall Street Journal article. My approach—and my qualifications—are very consistent with what was outlined here.
Wall Street Journal Reports Monday February 8th, 2021
Long-Term Care Insurance: First, You Should Find an Agent
Ask Encore: By Glen Ruffenach
I’m thinking about buying long-term-care insurance. Can you recommend a particular insurer or type of policy?
Actually, your best first step is not to shop for a carrier or policy. Rather, it’s to shop for a knowledgeable, independent agent.
Before we get to the particulars, let me pause and emphasize how important this topic is. One of the biggest financial mistakes that older Americans make is failing to plan for long-term care: what type of help they might need, how long they might need it, and how they are going to pay for it.
“I don’t need Long-Term Care right now, I’ll deal with it when the time comes!”
I have spoken with many retirees through the years who simply are in denial (“I won’t need long-term care”) or are playing a waiting game (“I’ll deal with it when the time comes”). Both attitudes can put you and your savings at risk.
The Department of Health and Human Services, in 2016, estimated that about half of people (52%) who reach age 65 will require some type of long-term care and incur, on average, $138,000 in costs. In 2017, PricewaterhouseCoopers, after examining claims submitted to eight major insurers, put the figure at $172,000.
So, I applaud that you’re thinking about this. But please: Take a step back. Long-term-care insurance, as you’re probably aware, is a ridiculously complicated product, one that comes in many shapes and sizes. As such, an independent agent—one who sells policies from multiple carriers and who specializes in long-term-care planning and insurance—can help you navigate these waters.
How to find such a person? First, there are several educational and training programs for insurance agents and other financial professionals that focus on long-term-care insurance. One of them, Certification for Long-Term Care, has a locator on its website that identifies its graduates across the country.
Second, search online for experts in or near your locale. (Example: long-term-care insurance specialist in your town or city.) And third, ask other professionals—financial planners, accountants, tax lawyers, estate planners—if they have worked with a long-term-care specialist.
Ideally, this exercise will generate several names. The next step—one that, admittedly, will take some time and effort on your part—is sitting down with these individuals and talking about their education and background. Here, what you don’t want, says Bill Comfort, a long-term-care insurance specialist in Durham, N.C., is someone who jumps immediately into policy features and premiums. Rather, you’re looking for an adviser who, first, takes time to understand your situation and needs and, second, can explain how various types of coverage might help.
Of course, you also will want to gauge how much of a “specialist” each candidate actually is. This means, Mr. Comfort says, asking about, among other issues, their experience (How many years have they sold LTC insurance? How many policies a year?); the number of carriers they represent (“captive” or “career” agents typically represent just one insurer); and their ability and/or willingness to sell different types of policies, including both traditional LTC insurance and “hybrid” policies, which combine LTC benefits with, say, life insurance or an annuity. (See a comprehensive list of questions on Mr. Comfort’s website.)
And…see if the agent, at some point, gives you (or directs you toward) a copy of “A Shopper’s Guide to Long-Term Care Insurance.” This 71-page booklet, published by the National Association of Insurance Commissioners, is a terrific resource. More to the point, the introduction reads: “Most states’ laws require insurance companies or agents to give you this Shopper’s Guide to help you better understand long-term-care insurance and decide which, if any, policy to buy.”
Yes, you can find this guide yourself on the association’s website. But an agent who takes pains to share this with you when you first meet could be a keeper.
You’ve planned ahead–or have you?
So, you’ve given the house (or farm or some other assets) to the children long ago so the government will pay for your long-term care, and you’re feeling proud of yourself for having planned ahead. But, I have some bad news for you—did you know that almost no assisted living facilities will accept you if you are on Medicaid? Medicaid payments to facilities don’t cover the cost of providing care, so most assisted living facilities don’t accept Medicaid. You could go into a nursing home because they’re required to accept Medicaid (since they receive Medicare payments for some services) –but you probably don’t want to go to a nursing home. Ok, you think– you can move in with your kids. They have room between classroom space for their kids learning from home, and all the time between their own Zoom meetings to care for you, and don’t mind adding your care to their day. Doesn’t sound likely, does it?
Have you planned ahead for assisted living facilities refusing to accept Medicaid?
This article tells the all too common story of a nursing home being converted to an assisted living facility – the kind of place you won’t be able to go to if your care is being paid for by Medicaid. Nursing homes across the country have been closing. When you need care, if you aren’t able to pay for it and only a nursing home will accept you, your helpers (family or paid) may have to look far and wide to find a place that will accept another patient paying for their care with Medicaid.
People who planned ahead can avoid a nursing home!
Being very wealthy, or having insurance to pay for your long-term care allows you to choose in-home care through an agency or the nicest assisted living facility in town—and you aren’t being a burden on your family. In most cases, I counsel my clients to plan to cover the cost of home care or assisted living, as the great majority of care can be handled there and not a nursing home. Through this, my clients get appropriate coverage that costs less. Contact me today for a free, no obligation discussion of what makes sense for you.
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!
Homes Might Turn Away Medicaid Residents
Some homes might have to turn away residents covered through Medicaid!
Some homes might have to turn away residents covered through Medicaid because the operation simply can’t afford the low reimbursement rate in return. If a home accepts too many Medicaid residents, it’s at risk of closing permanently and not having the ability to serve its current Medicaid residents, Vander Meer said.
A version of that happened at a Marshfield assisted living facility in 2015. Stoney River Assisted Living told nearly 20 residents they could no longer live there because it couldn’t afford to accept the reimbursement rate from public assistance. Instead, Stoney River officials said they would shift to only private-pay clients, or people who can pay for their care without government subsidies.
Sunday, June 14 Green Bay Press Gazette
Medicaid is a welfare program you don’t want to end up on!
Assisted living facilities will not accept it, home care agencies avoid it as well. Only the welfare nursing homes have (had, apparently) to accept it and now even they are trying to avoid it.
Hiding your money to get on Medicaid might sound good while planning (it’s free from the government) until you find yourself driving between NO VACANCY signs. On the other hand, LTCi, chosen appropriately, and while still healthy enough to get it, can be less expensive than divestment. It will give you choices and the welcome mat will be out for you, no matter where you want care – home or facility.
You won’t have to sell assets (fire sales never produce high values), have your family agonize over what to sell first, and can leave your savings intact for your spouse and/or heirs.
Call me at (920) 884-3030 to schedule a visit or just ask questions.
A Short Video on Long-Term Care
This is my 27th year of doing Long Term Care planning exclusively. Many of my clients come by referral from financial planners and attorneys all over Wisconsin.
You can check me out at www.TheLongTermCareGuy.com, Call me at (920) 884-3030 to schedule a visit or just ask questions.
Long Term Care in a Coronavirus Era
Stay safe from the Coronavirus, you do not need to go to a seminar to investigate how you might find help. We can talk on the phone, or you can come by my one-person office.
While it may be prudent to stay at home right now due to the Coronovirus, questions about how to handle long term care for someone who now needs it will arise. While I cannot help find care, I can offer ideas on how to access benefits to pay for such care.
Are you aware that there is home care coverage available to anyone – no matter health or diagnosis – who can currently live on their own for 30 days? It will pay a neighbor or a home care agency to provide that care at home when it becomes necessary.
There is also coverage for assisted living or nursing homes that will pay for a year of such care, and the cost is quite reasonable–$17.87/month at age 50. If you have been turned down for Long Term Care insurance, there is a good chance that this may still be available.
If someone is already in care, and spending savings down to Medicaid impoverishment, there may be a way to protect some of those savings for family that fits Medicaid rules. No matter what the health or financial situation, there may be a plan for you.
You do not need to go to a seminar to investigate how you might find such help. We can talk on the phone, or you can come by my one-person office (I have not been outside of Wisconsin since February 1). It is important to call ahead to schedule a meeting to investigate.
For those of you who realize that your IRA and 401K has shrunk considerably, and you do not feel wealthy enough to pay for $50,000 to $90,000 a year of care out of pocket, you might consider investigating Long Term Care insurance for yourselves. It can pay for years of care and save your wealth to pass on to heirs, instead of spending it for your nursing home care.
This is my 27th year of doing Long Term Care planning exclusively. Many of my clients come by referral from financial planners and attorneys all over Wisconsin. You can check me out at www.TheLongTermCareGuy.com, Call me at (920) 884-3030 to schedule a visit or just ask questions.
WHERE HAVE ALL THE NURSING HOMES GONE?
Over 550 nursing homes in the United States have closed in the past 4 years!
Over 550 nursing homes in the United States have closed in the past 4 years. Almost 60% of them—328—closed in just the past 20 months. Wisconsin was one of 9 states that accounted for more than half of the closures. Brown County, WI, where Green Bay is located, has lost 4 in the past 4 years. The latest is one located at the corner of Webster Avenue and Mason Street, closing in March. While these closures have an impact on the residents and the community at large, they can hit rural areas even harder, as rural areas have few (if any) alternatives.
Nursing homes make their money two primary ways. The first source is Medicare. Most call themselves rehabilitation centers and provide short term recovery care following a hospital stay. This is paid for by Medicare, as long as patients are making progress in recovering. The second source of revenue is from people who live there who and are not progressing toward recovering and returning home. At a typical cost of $11,000 a month or more, most residents in this group run out of money to pay for their care themselves and end up on a welfare program called Medicaid.
The duration of rehabilitation care allowed under Medicare is getting shorter and shorter. Medicaid pays nursing homes much less than the cost to keep a resident, causing homes to go broke and close.
Most long-term care (LTC) is provided at home or in assisted living facilities – but each year fewer and fewer assisted living facilities accept Medicaid. If you need care and can’t afford home or assisted living facility care, it’s the welfare-supported nursing home for you. And now there are fewer and fewer. Do you see the problem? Where do you go when you cannot afford LTC? When there is “no room at the inn”, you have to resort to other less appropriate alternatives–perhaps your children have a spare bedroom, a hospital bed in the living room, or one of them retires early (even if they can’t afford to do that) and care for you.
What does this mean to people who are planning on Medicaid paying for their LTC? They are likely to see the proverbial “NO VACANCY” sign on at the few nursing homes that remain open. If they cannot pay for the care they need when their health changes, they will be in despair and at a loss for options.
Have you addressed this need that many of you will face? Will you be prepared? Do you know how to choose LTC insurance products that are appropriate for your situation? Most people need far less insurance than they might imagine. If this is not something you are familiar with, why not consult an expert with over 26 years of LTC planning experience?
Consider using www.TheLongTermCareGuy.com to help investigate this. Even the wealthy buy LTC insurance so they can leave their wealth to whom they wish and their children do not have decide what to liquidate first. People with little nest egg need advice too. A client at age 50, in poor health, with little money, can buy a 1-year policy for LTC of $9000 a month for $214 annually – that is $17.83 a month. Most anyone can afford that. I have solutions for nearly every health or financial situation. Let me help you investigate this.
Look for Appropriate Advice on Dealing with the Costs of Long Term Care
Romeo’s has 27+ Years Experience giving Advice Dealing with Cost of Long Term Care
I just viewed an email from a stockbroker containing information on Long Term Care (LTC) and LTC insurance. It mentioned that 70% of people who reach age 65 will need LTC services. That statistic is accurate and comes from the US Department of Health and Human Services.
The email then went on to say how long the typical stay in a nursing home is, and the typical cost per year. Those numbers are irrelevant today, and that they were quoted shows how stockbrokers may not be knowledgeable enough to help you plan for LTC. They may be excellent at investing money but most are not familiar with long term care.
Stockbrokers and other investment sales people typically have a very limited array of LTC insurance products they can offer. They can only hope these limited products are the most appropriate for any particular client. In addition, most have very limited experience in dealing with LTC costs, facilities, or how services are used.
Very few people today will need to stay in a nursing home unless they are sent there for short term rehabilitation care following a hospitalization. This post-hospitalization rehabilitation care is paid for by Medicare, your health insurance. The other people living in a nursing home are primarily there because they ran out of money paying for care and had to fall back on a welfare program called Medicaid.
Most assisted living facilities no longer accept Medicaid as it pay less than the costs of care, but nursing homes who accept Medicare for rehabilitation care (their cash cow) must.
Today most LTC is provided in your home or the assisted living facilities, which can do nearly everything a nursing home did 20 years ago. Thus, in my planning with clients, we determine the amount needed for them to pay for homecare or assisted living care. These two kinds of care cover nearly 98% of the risk. People are happy to know that assisted living typically costs thousand less per month than nursing homes, and the amount of insurance needed reflects that.
Get Expert Advice Dealing with Cost of Long Term Care
If you are planning ahead, and investigating LTC insurance, consider doing so with someone with years of experience in doing just this. I am in my 27th year of planning exclusively for LTC and how to pay for it. My business comes primarily by referral from attorneys and financial planners from across the state of Wisconsin who realize they cannot be all things to all people. I am happy to help their clients find the best, most reasonable, and appropriate solution to finance LTC. I also can counsel people on how to best qualify for Medicaid if that is needed, and possibly protect some of their assets from the costs of care.
So, feel free to contact Romeo Raabe LUTCF, LTCP at www.TheLongTermCareGuy.com or by calling (920) 884-3030 to schedule a meeting to investigate.