Paying for a Nursing Home

What Will Boomers Do When They Need Long-Term Care?

Published on: October 25, 2019 | By McCulloch & Miller, PLLC

A generation seems to be waking up to the concept that they are likely to need to care for a spouse or a family member, and they’re taking it seriously.

A study from Bankers Life Center for a Secure Retirement reported that 90% of baby boomers surveyed understand that they will need to make significant lifestyle changes as part of caring for a loved one. Not only are they aware of this as a new role, but according to Think Advisor’s article, “Long-Term Caregiving Realities Hit Home for Boomers” they are willing to take a number of steps, including:

Cut spending: 66%

What You Need to Know About Evictions from a Skilled Nursing Facility

Published on: January 26, 2018 | By McCulloch & Miller, PLLC

With legal actions and media attention surrounding resident evictions, skilled nursing facilities (SNF) are learning more about what they can and cannot do. Seniors and families also need this information.

It’s hard to imagine an 83 year old being booted out of a nursing facility, but as seen in the case of Gloria Single, a resident of a California facility, it does happen. In this case, a legal battle over an allegedly improper eviction has followed.

A recent Skilled Nursing News article, “What SNFs Should Know About Proper Protocols for Resident Eviction,” reports that the whole eviction and proceeding appeals process can be daunting, and residents are often so intimidated by the process that when they receive an eviction notice, they just pick up and leave. They’re too afraid to do anything else.

The Big Mistake People Make About Medicare and Assisted Living

Published on: October 16, 2017 | By McCulloch & Miller, PLLC

A large percentage of Americans require assisted living care at some point during their senior years. Their understanding of how that gets paid for is way off base. It’s a hard lesson to learn.

Approximately one-third of Americans (34%) thought that Medicare would cover their nursing home costs, as reported in a survey from the Associated Press-NORC Center for Public Affairs Research. Another third, 27%, may have been a little smarter to say that they weren’t sure.

That’s not true, says WRAL’s recent post, “Expect Medicare to cover assisted living? Think again.” These results may correlate with the fact that only 37% of Americans think they’ll need any care in their later years, but in reality, about 70% will require this care.

Medicaid Matters—Here’s Why

Published on: September 26, 2017 | By McCulloch & Miller, PLLC

It is premature for anyone who depends upon either Medicaid or Obamacare to breathe a sigh of life. While recent attempts to repeal Obamacare have failed, both of these programs are being targeted.

Medicaid is far more important to more Americans than most people know. It does provide healthcare for the poor, but it also pays for long term care health care and nursing home care for millions of Americans.

Radio station WTOP in Washington, DC recently posted an article, “Why Medicaid matters to you,” which says that long-term care in the U.S. is extraordinarily expensive: the median annual cost of a private room in a nursing home is more than $92,000. A shared room costs more than $82,000. Expect these prices to continue to increase, since costs have risen by 19% since 2011. Similarly, the median price for care in an assisted living facility exceeds $43,500 and those seniors who want to stay at home with the help of an in-home aide from a home care agency pay $20 an hour or $175,000 a year for round-the-clock care.

Must-Do Retirement Planning Principles

Published on: June 19, 2017 | By McCulloch & Miller, PLLC

In the best of all possible worlds, your retirement finances include a nest egg that generates a steady flow of income while your principal assets continue to grow.

There are six key investment points that, if you can meet them, will make retirement finances work in your favor, according to Stock Investor’s recent article, “6 Retirement Estate Planning Criteria You Must Address.”

Minimum required yield. This is the first factor when looking for reliable long term income. It’s calculated based on household income requirements and investable assets—typically IRAs, taxable brokerage accounts and other savings that are planned for retirement income. When the required percent of investment (portfolio yield) increases, so does the income risk. When the yield is too high to be practical, traditional thought is to liquidate some of your principal by gradually drawing down your investment portfolio over the retirement years or by using an insurance product, such as a single premium immediate annuity.

Long-Term Care Insurance: Good Investment for Houston Families

Published on: December 1, 2015 | By McCulloch & Miller, PLLC

Nursing home and other long-term care expenses can be a financial burden for most families. And although long-term care insurance policies can help offset those expenses, LTC premiums are on the rise and can be quite costly. It can take careful planning to determine if LTC premiums can be paid for, without dipping into retirement funds.

When people purchased their policies 10 to 15 years ago, nursing home costs were about $150 or $200 a day. In some parts of the county, today’s costs can exceed $400 a day, or $12,000 per month for higher levels of care.

The expense incurred by the insured going on claim has caused the long-term care insurance industry to downsize. Those companies still offering policies are bumping up the premiums amid the rising cost of long-term care.

What Is Your Houston Family’s Long-Term Care Plan?

Published on: October 8, 2015 | By McCulloch & Miller, PLLC

Do you have a plan for long term care? It can be costly and prohibitive for many families, especially for dementia care. Several key points about long term care are clarified in a recent article from The Arizona Daily Star, “Costs pile up fast for dementia care.”

Don’t count on Medicare. The median annual cost for a private room in a skilled nursing facility in Tucson last year was more than $90,896. Assisted living costs about $45,000. In a 2015 annual Cost of Care survey, results showed that Americans paid approximately $16,060 more per year in 2015 for a nursing home than they paid in 2010.

Remember that Medicare doesn’t pay for long-term care, including home care, aside from 100 days of skilled services or rehabilitative care. After that, it’s up to the family to figure out how to pay. The options include long-term care insurance, public assistance through Medicaid programs for people over 65, Veterans Aid, or private pay. On average, an American turning 65 today will incur $138,000 in future long-term services. This cost could be financed by setting aside $70,000 today.

Medicaid Planning: Estate Planning AND Elder Law Skills Required

Published on: October 7, 2015 | By McCulloch & Miller, PLLC

The Huffington Post published an interesting article on the ethical and legal issues posed by two related legal practice areas, “Some Legal Issues at the Intersection of Elder Law and Estate Planning.” There are legal and ethical issues that arise when determining courses of action in both areas.

One is whether to dispose of assets through pre-need planning to qualify for means-tested government programs such as Medicaid that might pay, for example, the cost of long term nursing home care. This is very complicated, and you should work with a qualified elder law attorney.

If you want to maximize eligibility for means-tested governmental benefits, a common income reduction technique is to create a Qualified Income Trust (QIT), also called a “Miller Trust.” There are also other types of "special needs trusts" that can be created without reducing government benefits. Again, this is a highly complex area that requires help from an elder law attorney.

VA Long-Term Care: Helpful Benefits Available

Published on: July 24, 2015 | By McCulloch & Miller, PLLC

A survey conducted by the National Association of Area Agencies on Aging, National Council on Aging and UnitedHealthcare reveals a frightening statistic in the United States of Aging survey. 97% of professionals supporting people 60 and older believe that seniors will not be able to afford their health care costs as they age. Only 3% are very confident older Americans will be able to manage health care costs. Not a pretty picture.

The high and ever-increasing cost of long-term care is the leading reason that professionals do not believe that seniors will be able to afford their health care. The median price of a private room in a nursing home now costs about $91,000 – an increase of 4% from last year. The survey on aging, reported on in an article in Forbes, offers a glimmer of hope with a look at a little-known program from the VA: "The VA Program That Pays For Long-Term Care for Vets."

About half of us will someday use nursing home care, and many others will need long-term care in assisted living facilities or at home.

Can You Navigate the Medicare Maze?

Published on: June 24, 2015 | By McCulloch & Miller, PLLC

"If you get a claim denial, always contact your doctor or hospital to see if they can help you through the appeal," said Shirley Whitenack, president of the National Academy of Elder Law Attorneys and a partner with law firm Schenck, Price, Smith & King.

Larry Tocco retired last year from a job in the collections department of a credit union. After some medical treatment, he started receiving past-due notices from health care providers after his claims on a Medicare plan weren't paid. After several frustrating phone calls, Larry learned he was still on the active employee roll of the health insurance plan covering his former employer. As a result, his Medicare plan was considered secondary coverage.

A benefits manager from the credit union told him they sent the retirement paperwork, but the representatives with the Medicare provider said they didn't get it.