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Long-Term
Care Education 101 – Part 2 of 2
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This is the second article of a two part educational series. The first part dealt with the problem, the who, where, when, why and the costs, etc. This second part deals with most of the various potential common generic solutions. This series is a brief attempt to advance correct knowledge to combat a lot of mis-information, mis-understanding and mis-perceptions when it comes to Long-Term Care in our local area.
Some Of The Potential Solutions: Multiple options, each with advantages and limitations, may be available.
1. Family and/or friends: Initially, out-of-the-pocket expenses may be less to stay at home. However, at what price? Questions to ask concern the care-givers' skill, training, experience or lack of it; their available time and dedication and what they have to give up; their physical and emotional capabilities now and in the future; their household’s physical, financial and emotional needs and desires; your physical, emotional and other household changes needed for you to stay at home. etc. Are there training programs to help train your potential care-givers?
2. Self-insure: Questions to ask yourself might include: How long can your assets hold out at today's costs ($70,000 to $146,000 annually) and, possibly, after future compound inflation? Also, did you have other goals that you wanted your assets to cover, such as a spouse or relative, education, a home, retirement, travel, "toys", gift-giving, etc. instead of going to an un-known third party? Are there ways to protect your assets ... legally ... and still receive quality care in a setting of your choice?
3. MEDIcare vs. MEDIcaid: Are you aware of the difference between the two - the Medicare insurance vs. the government welfare program called Medicaid? There is much confusion between these two plans. Medicare and other forms of insurance like group or individual private health insurance, Medicare supplements, retiree health plans, HMOs, VA plans, or disability income plans usually do NOT cover Long-Term Care expenses.Medicaid is the government insurance program for the destitute, which means you have to become poor to qualify for the welfare hand out and the associated quality of care. In addition, you can lose your right to choose where and what kind of care you receive. If you are considering this option, please investigate what that truly means in the FULL realm of care before making your decision. There may be major legal and practical consequences as well.
4. Long Term Care Insurance: Although it may be expensive, many believe this is the only true peace of mind solution to obtain quality care and protect one's assets in a variety of settings. Even the government - the largest employer in the country - endorses Long-Term Care Insurance for their employees as they understand the importance of the critical health care situation now and in the future. The IRS has even offered tax incentives to purchase LTC Insurance. There are numerous companies offering Long-Term Care Insurance today. Many of them offer several types of policies, each with different benefits, bells and whistles so that today there is an excellent possibility that one can tailor-make a practical solution to your individual needs and your individual affordability. You need to be careful as well that you don’t go over-board. The options and combinations are endless. Literally!!! There are also group plans for your whole family's LTC needs that can be made available through your employer or other affiliated groups, possibly with additional tax benefits. There are even creative ways to make sure the policies are paid either monthly, quarterly, semi-annually, annually or even a one-time payment.
5. Other options: For many people concerned with this growing need, a combination of the above most common options may be the best solution. As an example, you might consider combining care by friends, family, and others in the location you choose, along with self-insuring part of the cost you can comfortably afford, and transferring the potentially big expenses to a third party, such as an insurance company.There are several educational support groups available as well as countless seminars, workshops, and knowledgeable people in various aspects of the industry. Those able to check the Internet will find additional resources. You should be cautious as you proceed before making your own decisions. Bottom line - there is no one correct cookie-cutter solution for everyone as no two situations and goals/objectives are identical. With these two articles, we’ve provided a generically very brief overview of the whole Long-Term Care dilemma. # # # Gary F. Restall of AGS FINANCIAL SERVICES is an independent full-service Registered Financial Planner, Registered Investment Advisor, Insurance Broker, and Long-Term Care Consultant. He is located locally in Northboro and can be reached for additional questions. |
