Be Prepared for Long-Term Care with Clear Communication

By Marc Manor

Most of us are horrified as the prospect of being in a position of no longer being able to care for ourselves.  We are horrified for two reasons:  First, we don’t like the idea of not being able to carry out our own “Activities of Daily Living” (commonly known as ADLs) which are those activities required for one to adequately take care of themselves (bathing, bathroom, mobility, dressing, self-feeding etc.); and secondly, we really don’t like the idea of our spouse or children changing our diaper!  

Courtesy of pexels.com

It is hard to imagine ourselves getting to the point where we cannot function on our own, but assisted living and nursing homes are full of people who probably felt the same way just a few short years ago.  The reality is we are all just one accident or illness away from that horrible reality.  Some of us think about how we will handle the possibility of requiring long-term care, yet others don’t seem to think of this as a priority.  As someone who has dealt with this situation for both of my parents, I highly recommend discussing the possibility with those you love and trust and have a plan in case long-term care becomes a reality.  Some of the most well thought out financial and estate plans have been derailed because of long-term care requirements.  Here are some things to consider:

Financial Loss - The most obvious concern when it comes to long-term care, is the financial requirement for getting adequate accommodations and/or medical care.  AARP has a long-term care cost calculator at https://www.aarp.org/caregiving/financial-legal/info-2017/long-term-care-calculator.html.  You can see for what it may cost for services in your area.  I ran a check on Jacksonville, Florida (an area where the cost of living is reasonable) and a semi-private room at a nursing facility is estimated to be over $100K just for one year.  Based on that alone, you can see how easy it would be to decimate a lifetime of saving in a short period of time.  If you find yourself in that situation and you don’t have a spouse or children, it may not be a significant issue. However, what about the financial collateral damage you could leave your family and/or loved ones?

Courtesy of pexels.com

Medicare and long-term care - This is simple.  Medicare does not cover long-term care.  Once your care transitions from medical (an illness or injury that can be recovered from) to custodial (when you need “personal care” to assist you with ADLs) then Medicare may excuse itself from the equation and could stop paying claims under certain long-term care situations.  

Medicaid - Medicaid is a state and federal assistance program available to those who meet low income thresholds.  The requirements and rules for how Medicaid works can be significantly different from state to state.  Medicaid can sometimes be the only answer when a person’s savings will not support a long term care private pay.  The Medicaid process a very stressful time for the long-term patient and their loved ones as they scramble to legally determine if their personal assets make them eligible for Medicaid assistance to pay for long-term care.  While all nursing homes and assisted living facilities have stringent standards and most have highly professional staffs, Medicaid recipients tend to have fewer choices when it comes to long-term care.  There also can be collateral effects of receiving Medicaid benefits such as liens on property and other assets.  Medicaid recipients may also experience complications with their spouses.  Again, I recommend being familiar with the requirements of your state. 

Family Relationships - This is another one of the collateral damage issues that sometimes plays out.  Sometimes differing opinions on the part of children and other loved ones result in a strain on their relationships.  This is another reason for clear communication.  Medical directives, wills and other legal documents can many times help, but it is difficult to cover every aspect.  I have seen this play out on several occasions and it is usually not pretty.  Attorneys and others are sometimes brought in to keep the peace.  

Courtesy of pexels.com

Statistics - There are a ton of statistics out there, but I find many of them to just muddy the waters.  Every family has its own dynamic in terms of health history, financial stability, and views on how to handle their business affairs.  That’s why it always comes back to communication.  To avoid the subject until it's too late could result in some serious consequences.  Just as an occasional family fire drill can mean the difference when it comes to an emergency, a family walk-through of “what-if” scenarios for long-term care can be very effective to achieving an expected result for all parties involved if the time ever comes.  

I encourage everyone to sit down with their family to evaluate the risks and decide what that plan will be.  I further recommend putting as much of that plan in writing and review it on a regular basis along with other important family business.  

Marc Manor is a 30-year military veteran who is now dedicated to teaching his fellow Americans how to make the most of their Medicare and healthcare benefits. As an independent agent, Marc has access to a wide variety of carriers with an abundance of resources to find tailored solutions. There is no charge for a consultation so call 904-222-0698 or email: marc@marcmanor.com.