Protecting Money from Nursing Homes
Looming crisis in nursing home care
Rural and small market areas continue to experience growing “nursing home deserts,” an increasing crisis for local officials and beneficiaries facing access issues. The problem is two-fold. The closures stem from a mix of staffing shortages and lackluster Medicaid reimbursement—with the latter causing the first. Too many people think that Long-Term Care is free from the government–and it is once you have spent everything you own down to under $2000 and cashed in your life insurance (requirements for married persons differ slightly). Then they find the “no vacancy” sign lit up at assisted living facilities, and the nursing homes closing their doors due to losing money on Medicaid residents have no room either.
It used to be “Buy LTC insurance to not go broke”, but now it’s “Buy LTC insurance so you will find a place to receive care.”
Have you thought about how you will pay 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] .
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] .
Will you be in the news?
Will you be in the news?
Many of you have read about or have seen news stories of seniors being evicted from a long-term care facility. It is a tragedy that some people spend down their savings paying for care at the end of life. Medicaid (government welfare) can help these folks, but it pays the facility far less than the cost to care for them.
You can’t lose money on every customer and make up for it in volume!
Smart people buy insurance that pays for this care. Why not insure for end-of-life nursing care, and leave your savings to heirs?
Call TheLongTermCareGuy.com at (920) 884-3030 and learn about Long Term Care insurance.
Americans are focused on the wrong retirement risks
Center for Retirement Research at Boston College
A study from the Center for Retirement Research at Boston College found that Americans cite market volatility as the top retirement risk, while longevity and health care costs actually present bigger risks. The study concluded that Americans need more education about retirement risks, as well as a source of secure income and long-term care planning. To view the article, click on the link below and then on “take me to the story”.
Research: Americans focused on wrong retirement risks
Has your planner addressed the risk of spending an extra $50,000 to $90,000 every year for 3-5 years when your health changes? If not, or even if your planner did, remember that they specialize in investing money. I am an expert in planning for and dealing with Long-Term Care. Investigate with an expert and get the best advice and solutions available. Visit my website at www.TheLongTermCareGuy.com or call (920) 884-3030 to schedule your time to investigate
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.
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!
Why Can’t I Spend my Money on Fun?
Often, retired people are afraid to spend money on fun or travel because they fear the catastrophic costs!
A recent Wall Street Journal cartoon featured a gentleman visiting his financial planner. In the cartoon, he asks the planner, “Why can’t I spend some of my money on fun now?”
Often, retired people are afraid to spend money on fun or travel because they fear the catastrophic costs they would face if one of them needs long term care (LTC). This can be a real concern, because the U.S. Department of Health and Human Services says that 70% of people who reach age 65 will need some long-term care. The great majority of us cannot afford it for long if we’re paying out of pocket.
Many people assume the insurance for LTC is prohibitively expensive. This is because they never investigated what the costs actually would be for them. I can tell you with near certainty that you need less of it than you imagine. When you finally need care, your lifestyle will change considerably. If you cannot drive there will be fewer vehicles, boats, toys, and less travel, golf, dining out, and so on. The money spent on fun (which you SHOULD do while healthy) can be redirected towards the costs of LTC.
Most people have some savings. Without touching the principle, you can spend the interest or yield it generates. Add this to the savings from your lifestyle changes, and you may find you can cover a significant portion of the costs of LTC yourself. You will only need to cover the shortfall from some other sources, like insurance, so you do not spend down all your savings and end up on Medicaid.
People investigate LTC insurance for two reasons.
- First, they do not want to go broke.
- Second, many long-term care service providers will not accept Medicaid. Nursing homes generally have to because of federal laws–but a nursing home is usually the last place you want to be. If you have the ability to pay from your cash flow and insurance, it will let you choose where and how you will be cared for. The providers will welcome you with open arms!
If you have not investigated LTC insurance, now is the time, while you are still healthy enough to get it.
It is a logical discussion and it is not appropriate for everyone. But please investigate with someone knowledgeable in planning for LTC. At The Long Term Care Guy, we have been doing only LTC planning for over 25 years. Since nearly all of our business comes to us by referral, we may even may be working with your financial planner or attorney!
Call TheLongTermCareGuy.com at (920) 884-3030 or email us for a time to investigate your situation.
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.
What Can I Do About Long Term Care?
Long term care is very expensive. Few people are prepared for the cost when they determine they need care.
Long term care is very expensive. Few people are prepared for the cost when they determine they need care. Fortunately, there are ways to deal with the bills even if you do not have much money.
Medicaid requires beneficiaries to spend all savings and other assets down to impoverishment before they will pay for care. This includes a requirement that any life insurance with a value over $1,500 be cashed in—some people have life insurance so that there is money to pay for their funeral. If someone needs Medicaid to pay for their care, this insurance will need to be cashed in, leaving no money for final expenses as planned. Medicaid does, however, let you set aside up to $15,000 to pay for final funeral expenses if this is done in an irrevocable burial trust. I set these up for people at no cost.
Medicaid also allows you to set these irrevocable trusts up for the final funeral expenses for each of your children and their spouses in addition to the one set up for you. This allows you to leave funds to family instead of spending it all on the costs of long-term care.
Few people know of these Medicaid rules and then leave nothing but the funeral bill for their children.
You have some savings in the bank, earning very little interest. The irrevocable trusts also earn interest, cost nothing to open, and protect money from the Medicaid “spend down”. No need to spend money to open these, other than the amount you want to place in the trust.
At TheLongTermCareGuy.com, we help people deal with the costs of long-term care. We also offer alternatives to help those planning ahead to pay for long term so they don’t have to spend their assets down to impoverishment. There is no charge to meet and explore options. Call us at (920) 884-3030 to schedule a free consultation.
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.