A lot of people are amazed when they find out how expensive long-term care is these days.  If you calculate the average annual cost for a private room in a nursing home coupled with the average length of stay the reality is that you may be looking at an expense that exceeds $200,000 toward the end of your life.  This is obviously going to be difficult for a lot of people to handle out-of-pocket, and Medicare does not pay for long-term care.

An alternative that exists would be to seek Medicaid eligibility because Medicaid does in fact pay for long-term care.  Because of the fact that Medicaid is technically in existence as a safety net for people who have serious financial need there is an upper resource limit that you cannot exceed if you want to qualify for Medicaid.

This limit is just $2,000, so you may think that there is no way that you will qualify.  The reason why a lot of people can qualify who do in fact have some resources is because not everything that you own counts toward this number.  And, if you are married and you need long-term care and your spouse does not he or she can keep his or her half of the community resources up to a certain amount.

This amount has changed for the better now that we are in 2012.  The healthy spouse may retain $113,640 in countable assets this year as opposed to the $109,560 that held sway in 2011.

Becoming eligible for Medicaid can be a solution to a difficult dilemma.  If you would like to explore possible Medicaid eligibility strategies simply take a moment to arrange for a consultation with a good Indianapolis elder law attorney.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

Many people have no idea how much long-term care costs or how likely it is that they’re going to need it.  This is a matter that is swept under the carpet because for one thing many individuals simply don’t want to go there mentally, and when you’re elder years are a long way off the subject may not seem relevant.  But in reality it is a matter that you may want to take into consideration as soon as possible, because the expenses are considerable, most people will need care, and Medicare does not cover long-term care.

Up until now Medicaid has paid for long-term care costs if you can qualify.  As of this writing there is an upper income limit of $1,500, but the healthy spouse may retain his or her half of the assets up to a certain limit and your home, your car, and some personal possessions don’t count toward this eligibility threshold.  So a lot of people aim toward Medicaid eligibility in anticipation of a possible stay in a long-term care facility.

However, the cost cutters in Washington have Medicaid in their sights and this is a matter of great concern to many in the elder law community.  Two out of every three dollars that are spent by the Medicaid program go toward helping seniors and disabled individuals.  40% of all long-term care costs incurred in the United States are paid by Medicaid.  So any cuts to Medicaid are going to impact senior citizens.

Right now there is a committee hatching a plan to trim the federal deficit by $1.5 trillion over the next 10 years.  Within this past year both the Congress and the president have proposed gargantuan cuts to Medicaid.  So it would be logical to assume that the so-called super committee will call for cuts to this program that many seniors rely on heavily.

The only way to be sure that you are prepared is to take the bull by the horns and make sure that you have the personal resources that you need to address your long-term care costs should you incur them.  To map out a plan for achieving this goal, take a moment to arrange for a consultation with an experienced elder law attorney.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

A lot of people do not concern themselves with budgeting for potential long-term care costs because they’re under the impression that Medicare will cover these expenses.  In reality, Medicare does not pay for an extended stay in a nursing home or assisted living facility.  And if you’re thinking that it will be simple to adjust to these expenses should they arise, you may not be aware of the present state of long-term care costs.

Every year the MetLife Mature Market Institute culls a great deal of research data on the subject and publishes it in a report.  According to this year’s report, in 2010 the average cost for a year-long stay in an assisted living community in the United States was nearly $40,000.

A year in a private room in a nursing home would run you just over $83,500 on average. According to the United States Department of Health and Human Services men who need long-term care require it for 2.2 years; for women the figure is 3.7 years.  Given these statistics, you could be looking at a very significant expense.

Some people respond by doing what it takes to qualify for Medicaid, which does pay for long-term care. You can’t have assets exceeding $1,500 in Indiana, but some things don’t count, such as your home, your car, and some valuables.  So there is such a thing as a Medicaid “spend down” strategy. It’s basically self-explanatory: you spend down your assets until you get within the Medicaid resource limit.

However, there is a five year look-back period.  If you give away assets in an effort to qualify for Medicaid within five years of applying you are penalized.  The penalty is based on the amount of money that you gave away as compared to the average cost of long-term care in the state within which you reside.

If you’re interested in finding out more about Medicaid and how it may fit into your incapacity plan, simply arrange for a consultation with an experienced elder law attorney.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

A lot of people are not aware of just how much a stay in a nursing home costs and they don’t especially care, and this is often for one of two reasons.  There are always going to be individuals who feel as though they will avoid all challenging circumstance, reasoning that these types of things only happen to “other people.”  And there are those who mistakenly assume that Medicare will cover everything once they reach the age of 65.

The reality is that Medicare does not cover extended nursing home stays, and statistically speaking there is a very real possibility that you will spend some time in such a facility.  The “oldest old,” which is the term that is used in geriatric circles to describe people 85 years of age and older, is the fastest growing segment of the population.  And one out of every four elders who reach this age are residing in a nursing home at any given time.

As for cost, the national average for a year in a private room in a nursing home in 2010 was well over $80,000.  Many people would have difficulty paying for a few years in a nursing home considering the cost, and though Medicare does not pay for long-term care Medicaid will under certain circumstances.

To qualify for Medicaid you can’t have countable assets exceeding $1,500 in Indiana, but your home, your car, and your personal possessions don’t count under certain circumstances.  In addition, if you were to remain healthy when your spouse was in need of nursing home care, you do not have to surrender your countable assets that exceed $1,500.  You can keep half of the shared assets that existed when your spouse entered the nursing home up to $109,560.  And you can retain a minimum of $21,912 even if this amount is more than half of the shared assets.

Medicaid is a viable option for some people, and the best way to explore the possibility is through a consultation with an experienced elder law attorney.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

Are you retiring sometime within the next 20 years?  If you can answer this question yes, you are certainly among the many.  These are very interesting times in elder law circles because of the fact that so many people are reaching retirement age at the same time.  It is hard to wrap your head around this statistic but there are 10,000 people applying for Social Security every day right now and this is expected to continue for the next two decades.  With so many people retiring at more or less the same time, there is a lot of interest in the subject of health care for senior citizens, which brings us to the subject of Medicare.

Medicare is of course the government health insurance program that you paid into throughout your working life with the assumption that it will cover your medical expenses once you reach retirement age.  This would lead you to believe that you qualify for Medicare and Social Security simultaneously, but this is not the case.  As the parameters stand right now people who were born between 1943 and 1954 become eligible for Social Security when they reach the age of 66. It then rises by two months per year until 1960; people who were born during that year or later become Social Security eligible on their 67th birthdays.  However, all Americans become eligible for their Medicare benefits when they reach the age of 65 regardless of what year they were born in.

The fact is that Medicare does not cover everything, and one of the potential costs that Medicare does not cover is that of long-term care.  Medicaid will cover it under certain circumstances, but you must meet the asset eligibility requirements.  Your total countable assets must be less than $1,500 to qualify for Medicaid, but your healthy spouse can keep his or her half of the assets and your home, your vehicle, and your personal possessions do not count against you.

This is just a very surface glance at these health care resources.  Clearly the intricacies are rather complex, so the best way to proceed is with the assistance of an experienced elder law attorney who has a comprehensive knowledge of Medicare and Medicaid regulations.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

Elder law attorneys must pay close attention to all of the issues of the day that impact senior citizens, and one of the most challenging among them is the matter of long-term care and the expenses involved.  The United States Department of Health and Human Services estimates that approximately 7 out of every 10 people who reach the age of 65 will need some form of long-term care at some point in their lives, and this includes in-home care.  So those who want to say “this will never happen to me” would do well to recognize that the reality is that we are all likely to need long-term care someday.

That having been established, let’s take a look at the costs.  According to the MetLife Mature Market Institute survey, in 2010 the national average charge for a year in a private room in a nursing home was $83,500.  The same length of time residing in an assisted-living facility would run you almost $40,000 on average.  These are some pretty significant expenses to be facing at the end of your life, and people generally take one of the following approaches to address these costs.

Medicaid

Medicare will not cover long-term care, but Medicaid will under certain circumstances.  Many people are surprised when they find out that it is possible to maintain ownership of their home and other valuable personal possessions and still qualify for Medicaid.

Veterans Aid & Attendance Pension

There is an often overlooked military benefits program called the Veterans Aid and Attendance Pension that provides assistance to eligible veterans who need help with their day-to-day needs. If you qualify as a single veteran you may receive up to $1,632 per month to pay for long-term care either in an external facility or within your home.

Long-Term Care Insurance

You can also choose to purchase long-term care insurance.  The younger you are when you obtain coverage the more affordable it will be, so the sooner you explore this option the better (which is not say that it is necessarily the correct one for everyone).

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

The costs associated with long-term care are extremely high and rising, and this is something you really have to take into consideration when you are planning for the future.  In 2010, it cost nearly $40,000 to spend a year in an assisted-living facility on average in the United States, and the charge for a single room in a nursing home averaged over $83,500.  The average stay for someone who resides in a nursing home is about 2-1/2 years.

These numbers are clearly attention-getting, but just how likely is it that you will spend some time in a long-term care facility?  Statistics indicate that approximately 40% of seniors will do so, and 25% of the oldest old, people 85 years of age and up, are residing in a nursing home at any given time.  So the possibility that you will someday need long-term care is quite real indeed.

Many people are under the impression that all of their health care needs will be met by Medicare once the reach the age of 65, but this is not the case.  Medicare does not cover long-term care, but Medicaid does.  Medicaid is technically intended to provide access to health care to people who can’t afford it on their own, but at this point many senior citizens rely on it to pay for long-term care.  In order to meet the eligibility requirements some seniors must “spend down” their assets to bring them within allowable Medicaid parameters.

One way of doing this is by giving gifts to your loved ones.  However, Medicaid rules include a five-year “look back” period.  This means that you’ll be penalized for any gifts that you have given within five years of applying for Medicaid.  The penalty is calculated based on the average cost of long-term care in your state and the amount of the gifts.

So, the sooner that you recognize that you’re going to need to utilize Medicaid should long-term care become necessary the better, because it takes some careful and precise long-term planning to optimize your resources while gaining Medicaid eligibility.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

Leaving a loved one in the care of others is not an easy decision to make. The best-case scenario would be for a relative or close friend care for them. As this is not always possible due to schedules and the complicated medical care needed, you may have to trust nursing home staff to oversee care of your family member. This can be a nerve-wrecking and frightening decision, but there are some things you can do to ease your mind and ensure that your loved one is receiving optimal care.

Make Frequent, Unscheduled Visits

In the beginning, it is assumed you will make quite a few visits to the facility to bring in clothes and a few personal items. After the initial week or so, staff may ask when you, members of your family or friends may usually visit, this is used to help them anticipate when they should have your loved one available, and not involved in an activity or napping. While that knowledge is helpful to the facility staff, the unexpected visit can sometimes tell you more about the way the facility is run and what the “normal” for the facility is.

Monitor Your Loved One’s Eating Habits

After every meal the amount of food consumed as well as fluid intake for each facility patient is recorded in a book at the nurses’ station. This knowledge can be shared with family members. The bathroom habits of patients are also recorded. Should your loved one’s eating habits changed or they are not regularly using the bathroom, ask the nursing staff for assistance. Medications sometimes decrease appetites and change elimination patterns.

Lock Up Valuables

While no one should enter a nursing facility with valuables, it is customary to wear wedding rings or gold necklaces. Other small valuables such a MP3 players, Cds and small amounts of money can usually be locked up in a secured drawer in your loved one’s room. A portable lock box is not recommended.

Label Everything

Label everything in a permanent marker, right down to the socks with your loved one’s name. Most often the facility will perform housekeeping duties, including laundry. All clothing, including underwear, should be labeled with a laundry marker. Also make sure shoes are labeled. Accidental mix-ups are common and labels make it easier for the staff to locate your loved one’s belongings.

Ask Questions

The more questions you ask, the more the facility understands that you are actively involved in the care of your loved one. If you see anything you do not understand, speak up. Go to the nurses directly involved in your loved one’s care. Ask for the social worker to sit down with you and other family member. Facilities will understand your loved one’s needs better if you allow them the opportunity to meet them.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

The terms Medicare and Medicaid are confusing because the names are similar but the federal programs are set up for different purposes. Medicare is the federal healthcare insurance plan that covers senior citizens age 65 and over as well as younger people who qualify for Social Security disability payments. Medicare is partially funded by required payroll deductions from all employed persons and the remainder of the costs are paid from the federal budget.

Medicaid, on the other hand, helps to pay healthcare costs for low-income individuals who do not have health insurance and some disabled persons are eligible for Medicaid. An important part of Medicaid is coverage for long-term care in a nursing home for persons 65 years of age and older. Medicaid is funded in part by the federal government and the rest of the costs comes from the state government where the individual resides. Because Medicaid programs and funding are controlled by each state, there is great variation in the benefits available to Medicaid recipients as well as eligibility requirements. However, some of the eligibility requirements are set at the federal level.

Meeting eligibility requirements for Medicaid might be straightforward for a low-income single parent family but other individuals may face significant financial scrutiny before being allowed Medicaid benefits, especially nursing home care. For example, even though an individual meets the current Medicaid income requirement, about $2,000 per month in income or less, the program also looks at assets as well as examining the individual’s financial record for the past five years, called the five-year look back period.

Anyone who has difficulty with Medicaid eligibility and receiving Medicaid benefits needs the assistance of a Medicaid attorney. A Medicaid attorney is a lawyer who specializes in assisting qualified individuals through the Medicaid eligibility process. In addition, a Medicaid attorney can assist senior couples plan their estate so that the family finances will not be depleted should one spouse need extended nursing home care. This type of estate planning should be handled by a specialist in Medicaid laws, a Medicaid attorney.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

When people refer to a “look back” period, more than likely they are talking about the period of time that Medicaid can look back to see if someone has transferred assets for less than fair market value. This is to see if a person qualifies for Medicaid, which is a needs based program.

To qualify for Medicaid, a single person cannot have more than $1,500 in assets.

Medicaid can “look back” 5 years to see if the person has transferred assets within that time frame. If so, a period of ineligibility begins. The look back period used to be three years, but was increased to five as part of President Bush’s Deficit Reduction Act. The ineligibility period also changed under the Act. Previously, the period started when the assets were transferred. Now, the period begins when someone applies to Medicaid for long-term care benefits.

For example, if someone transferred a house worth $200,000 during the five-year look back period, and entered a nursing home, where the cost of care was about $5,500 per month, the period of ineligibility in this case would be 36 months (200,000/5,500).

A look back period can also apply to someone who is applying for SSI (Supplemental Security Income).

Not being able to pass your home to your children, or having to spend down your life savings to qualify for Medicaid can be one of people’s biggest fears. Talk to an estate planning attorney to find out the best way to plan for long term care and how best to protect your assets.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.