Month: June 2023

Most older adults have to plan how they will pay for senior care — because this type of care can be expensive, strategic planning is important. If a person can’t afford care, they may be able to qualify for Medicaid, which can help pay for it. This national and state insurance program has strict income and asset requirements, so people may choose to use Medicaid planning strategies to become eligible for Medicaid when the time comes. Here, we’ll explain five common Medicaid planning strategies that can help people plan to qualify for the program, all while using their money and protecting their assets legally and wisely.

What is Medicaid, and how do I qualify?

Medicaid is a jointly funded state and federal government insurance program that provides health insurance coverage for low-income individuals. Medicaid covers health care and nursing home care, but it does not cover long-term care.

To qualify for Medicaid, the applicant’s resources cannot exceed the limit set by the program. The following are the resource limits for individuals and married couples:

• •Individuals are allowed a monthly income not exceeding $2,742.
• •Married couples can have a combined monthly income of $5,484; each spouse may earn up to $2,742 monthly.

Applicants should also account for other countable assets. Countable assets include property that can appear as income, including stocks, bonds, cash, bank accounts, investments, IRAs, 401(k)s, and any funds that may remain from a COVID-19 stimulus check. Even if an applicant meets the income threshold, their application may be denied if their countable assets exceed the resources limit. A Medicaid applicant may lower their countable assets and resource amount through Medicaid planning strategies.

A person needs to consider two general areas when planning for Medicaid eligibility: their assets and their income. Below are common Medicaid planning strategies used for each of these areas.

Medicaid planning strategies that protect your assets

People typically amass assets over their lifetimes and hope to pass them on to heirs or beneficiaries after passing. But as long-term care costs add up, you may use those assets to pay for care. Some common Medicaid planning strategies help individuals protect their assets so they do not need to sell their homes or let go of other assets to pay for in-home care or a senior living community. Below are common strategies that help people with asset planning.

Medicaid spend down

Medicaid spend down is the process of reducing the amount and value of an applicant’s resources to make them eligible for Medicaid coverage. There are several ways to take advantage of Medicaid spend down to help you or your spouse get coverage: 

• •Paying for home modifications like kitchen or bathroom remodels.
• •Prepaying for funeral and burial expenses.
• •Purchasing medical equipment like wheelchairs and chair lifts.
• •Paying off debt, including credit cards, vehicles, and mortgages.

Remember the look-back period if you choose to participate in Medicaid spend down. Medicaid’s Look Back Rule prevents applicants from gifting, selling, or transferring their assets below fair market value. Medicaid will “look back” over several months or years for any transactions. Transactions made within the look-back period are all subject to review. Consider keeping a log of your transactions to provide proof of asset transfer.

Life estate

Many seniors are understandably concerned about keeping their family home if they receive Medicaid coverage during their lifetime. If Medicaid paid for your nursing home care, hospital stays, or other medical care, it may require your estate to repay the value of those benefits after your death. This is called Medicaid estate recovery.

Many people choose to create a life estate to avoid Medicaid estate recovery. A life estate allows a homeowner to transfer the title of their home to another person for that person’s lifetime. A life estate removes the house from your countable assets for Medicaid purposes. Speak to an estate planning attorney for more information regarding this option.

Caregiver agreement

An increasing number of seniors want in-home care and want this assistance from someone they know intimately. Often, family members take on the task of caring for their aging loved ones. Caretakers may need to quit their jobs to ensure they can provide adequate care. Discovering payment options for caretakers is a part of most common Medicaid planning strategies.

Caregiver agreements exist to help seniors pay for their in-home help. The more a senior pays out of pocket for in-home caregiver services, the more their countable assets are reduced for their Medicaid application.

Spousal refusal and spousal transfers

Medicaid allows spousal transfer. Spousal transfer happens when a married couple transfers any assets solely in the spouse’s name seeking coverage into the well (sometimes called “community”) spouse’s name. This is a common Medicaid planning strategy, and it can significantly reduce the spouse’s countable assets for their Medicaid application.

Spousal refusal is available in a minority of states. With spousal refusal, the community spouse refuses to provide any support to the other spouse. The spouse seeking coverage then becomes immediately eligible for Medicaid benefits.

Medicaid planning strategies that protect your income

Another category of Medicaid planning strategies aims to protect the applicant’s income. Speaking to an estate planning attorney and discussing whether you need to revamp your estate plan may be beneficial. Among common income planning strategies is the Qualified Income Trust.

Qualified income trust

A qualified income trust (QIT) is a financial planning tool for Medicaid applicants if their state does not allow Medicaid spend down. A QIT is an irrevocable trust account that holds a Medicaid recipient’s monthly income and disperses it to pay the recipient’s medical expenses.

Medicaid planning tip: Seek legal advice

Ultimately, the best way to understand your Medicaid planning options is to speak with an experienced elder law attorney or Medicaid planner. Your estate planning attorney will help you know the best next steps for your special set of circumstances.

Navigating the real estate market can be challenging, especially for older adults facing unique needs and circumstances. Thankfully, there are professionals called Seniors Real Estate Specialists (SRES)® who are trained to assist seniors in meeting their specific requirements. Here, you’ll learn the key aspects of the SRES® credential that can help older adults tackle the challenges they encounter when selling their homes.

What is a Seniors Real Estate Specialist®?

A Seniors Real Estate Specialist (SRES)® is a realtor who has completed extra training to assist older adults with their unique housing needs. SRESs® must complete coursework to earn this credential. Through this program, an SRES® develops a deep knowledge of senior-specific laws, regulations, financial considerations, and the challenges of selling a home someone has lived in for many years. 

How SRESs® help seniors with the home-selling process

This professional provides personalized guidance and support throughout the real estate process, helping seniors navigate the challenges of the home-selling process. By working with an SRES®, older adults benefit from the expertise and compassion of a professional who understands their specific needs, ensuring a smoother and more successful real estate experience. Working with an SRES® can alleviate the burdens of selling a home for a senior. Here are some key benefits of working with a Seniors Real Estate Specialist®:

Compassionate, emotional support

A Seniors Real Estate Specialist® has extensive experience working with older adults and their families. They recognize difficult parts of the process and understand that compassion at an exciting and stressful time like this can go a long way. While the home-seller may not have ever been through this, the SRES® has with their past clients. 

This professional helps the family through each step of the process with compassion and empathy. After decades of living in a home where a person has likely raised a family and made memories, selling it can be an emotional decision. An SRES® understands the sentimental value that becomes attached to the home over the years and handles the selling process with respect and compassion.  

Advocates for the senior’s best interests and financial protection

Older adults have different considerations when it comes to finances. They may be retired or close to retirement and need to maximize profit for saving or to pay for a move to a senior living community. An SRES® can offer guidance on pricing strategies to maximize the home’s value, ensuring seniors receive fair compensation. These professionals also gain expertise in the potential tax implications and financial strategies that can impact older adults when they sell their homes.

The training to earn the SRES® designation sets them apart in the real estate industry, as it teaches them senior-specific real estate laws and regulations. They become well-versed in topics such as fair housing for seniors, age discrimination laws, and housing accessibility requirements. This specialized knowledge allows them to navigate the legal landscape and ensure that older adults are protected throughout the buying or selling process.

Customized support with other professionals

An SRES® understands the steps a senior may need to take to sell their home and will help with each step. They will employ a marketing approach tailored to the home and its area to attract buyers who will appreciate its unique features. While all real estate professionals must consider this aspect of home selling, an SRES® often works with homes of similar ages and conditions and offers effective strategies to maximize the home’s value.

A Seniors Real Estate Specialist® also connects seniors with other trusted professionals to help them have the smoothest transition possible. Older adults, who may have accumulated a lifetime of belongings, may see decluttering and packing as a formidable task. An SRES® taps into their network of trusted professionals to help organize, declutter, pack, and move the homeowner’s belongings.

These professionals also have experience in coordinating and managing estate sales or auctions. This expertise is valuable when seniors must sell personal belongings or assets as part of the home-selling process. SRES® professionals can guide estate liquidation strategies, connecting seniors with reputable professionals who can assist with selling items such as antiques, collectibles, and furniture.

Lastly, an SRES® has a deep understanding of senior housing options. They are well-informed about and have relationships with professionals who can help seniors find the best senior housing options specifically designed for older adults. This knowledge allows them to guide seniors in finding the housing options that best suit their lifestyle preferences, care needs, and financial circumstances.

The bottom line

The benefits of working with a Seniors Real Estate Specialist® are numerous. Their specialized training, niche specialties, and understanding of unique challenges during home-selling make them invaluable allies for seniors. By providing emotional support, guidance, and advocacy, SRES® professionals offer seniors the assistance they need to successfully navigate the real estate market. 

If you or a loved one is considering selling a home in your golden years, it is wise to seek the expertise of an SRES® to ensure a smooth and positive experience. Remember, empathy, understanding, and specialized knowledge are the keys to unlocking the full potential of a successful home sale for older adults.

You may benefit from having short-term care insurance and gain the ability to pay for senior care expenses at unpredictable times. Learn more about how you can cover your care needs here.

Planning for unexpected health care needs is key in today’s unpredictable world. Short-term care insurance is a great way to protect yourself and your loved ones. Unfortunately, many people are unaware of short-term care insurance and its many benefits. If you need to consider how you might need to pay for senior care, here are some benefits of having a short-term care insurance policy.

What is short-term care insurance?

Short-term care insurance is a type of coverage that offers temporary financial protection for people who need assistance paying for their care needs. This kind of insurance is designed to bridge traditional health insurance and long-term care insurance. This means it provides coverage for shorter durations to address unexpected situations such as recovery from injuries or illnesses, rehabilitation after surgery, or assistance during transitional periods. Short-term care insurance typically has fewer underwriting requirements and shortened waiting periods, making it accessible for most people.

What are the benefits of short-term care insurance?

There are quite a few benefits that short-term care insurance provides. We’ve listed some of the most prominent ones below. Remember, this is not a comprehensive list, so speak with an insurance broker to better understand how short-term care insurance may help you and your family.

Immediate coverage for unexpected health issues

When faced with unforeseen health events, time is of the essence. Short-term care insurance can provide you with immediate coverage, ensuring that you have financial protection when you need it most. This is key because we all know how expensive medical bills can be, especially if you’re not covered by insurance. Whether you sustain a sudden injury or illness, having this insurance in place can offer peace of mind, knowing that you can access the necessary care without delay.

Flexibility in coverage duration

Unlike long-term care insurance, which typically provides coverage for an extended period, short-term care insurance offers flexibility in coverage duration. You can choose the length of coverage that best suits your needs. Short-term care insurance allows you to tailor your policy according to your specific circumstances, whether you require coverage for a few weeks, months, or a year. This added flexibility in coverage allows you to design a plan that works with both your physical and financial health in mind.

Affordability and cost savings

Short-term care insurance premiums tend to be more affordable than long-term care insurance. The premiums for short-term care policies are often much lower than the long-term care alternative, making it a cost-effective option for many individuals and families. Additionally, if short-term care is needed, the potential cost savings can be significant compared to paying out of pocket for health care services.

No medical exam or waiting period

Getting short-term care coverage is relatively easy. Many insurance policies require a medical examination or impose waiting periods before coverage takes effect. That’s typically not the case when it comes to short-term care insurance. This means that you can get the coverage you need quickly and easily, allowing you to access the medical care you need the second you need it.

Accessibility after being denied long-term care insurance

Short-term care insurance can be a valuable alternative solution for those who have been denied long-term care insurance coverage. There are countless reasons that long-term care coverage can be denied, such as preexisting conditions or age-related factors. Short-term care insurance is often more accessible, allowing individuals to obtain coverage when long-term care insurance is not an option.

Bridge coverage during transitions

Another benefit of short-term care insurance is that it acts as a bridge during transitional periods. It offers coverage when you are between insurance plans or waiting for long-term care coverage to begin. Short-term care insurance is an option for those moving to a new residence or experiencing a coverage gap. A short-term care plan will protect you during this transitional period, providing you with the support and peace of mind you need until you have long-term care coverage.

Wrapping it up: Why get short-term care insurance?

Short-term care insurance can be valuable to your health care plan. Its immediate coverage, flexibility in duration, affordability, and lack of medical exams or waiting periods make it an excellent choice for individuals and families seeking financial protection against unexpected health care needs. With the proper short-term care insurance plan, you can rest assured knowing you’re prepared for unforeseen needs to pay for care.

Short-term care insurance, or recovery care insurance, is a type of policy that can help you temporarily pay for senior care services.

Short-term care insurance (STCi) is an essential financial tool that provides coverage for individuals who require temporary care services. Also known as recovery or post-hospitalization insurance, short-term care insurance offers protection against the high costs of short-term care needs. Here, we will delve into the details of short-term care insurance, including its purpose, cost, benefits, and more.

Understanding short-term care insurance

Short-term care insurance differs from long-term care insurance (LTCi) in terms of coverage duration and scope. While long-term care insurance is designed to cover extended care needs typically beyond 90 days, short-term care insurance provides coverage for shorter periods, usually up to one year. Short-term care insurance acts as a bridge between traditional health insurance and long-term care insurance, ensuring that individuals receive the necessary care during recovery or rehabilitation periods.

Situations where short-term care insurance is a good solution

Consider a scenario where an individual undergoes surgery and requires temporary assistance with daily activities. Short-term care insurance can cover in-home care, rehabilitation services, and even short stays at nursing facilities, easing the financial burden during recovery. It is an ideal solution for individuals who may not require long-term care but still need support for a limited period.

The best time and where to buy short-term care insurance

Short-term care insurance can serve a very helpful role in your health insurance coverage plan. Although there is no “perfect time” to buy STCi, there are quite a few situations where buying a short-term care insurance plan can be incredibly beneficial. 

Oftentimes, those who have been declined long-term care insurance or those who cannot afford it may find that STCi is a great alternative. Additionally, those looking for coverage during the elimination period (the period of time you have to wait before your long-term care insurance kicks in) often find a lot of value in short-term care insurance.

Qualifying expenses covered by short-term care insurance

Short-term care insurance covers a range of qualifying expenses. Some expenses that may be covered with STCi include:

• •Rent at facilities.
• •Home care services.
• •Home health care services.
• •Skilled nursing care.
• •Therapy services. 

These expenses are designed to support individuals during their recovery and rehabilitation processes.

Benefits and limitations of short-term care insurance

When making a claim, the amount of money accessible through short-term care insurance benefits depends on the specific policy and its coverage limits. Some policies may have a daily, weekly, or monthly limit for benefits. Short-term care insurance policies generally offer flexibility regarding benefit duration, allowing individuals to choose a coverage period that aligns with their expected recovery timeline. Additionally, short-term care insurance can be used alongside long-term care insurance policies, providing complementary coverage during different phases of care.

Short-term care insurance availability

Quite possibly, the most important thing to note is that short-term care insurance is not available for everyone. Although there are plenty of insurance companies that offer this type of insurance, there are many states that do not allow them to issue it. As of January 2022, according to the American Association of Long-Term Care Insurance, you will not be able to get short-term care insurance if you live in California, Minnesota, Florida, New York, Vermont, New Hampshire, Connecticut, or Massachusetts.

Pros and cons of short-term care insurance

While short-term care insurance sounds like a great option, it’s not for everyone. As with anything in life, there are both benefits and drawbacks to short-term care insurance. To help you get a better understanding of them, we’ve put together a list of the most prominent pros and cons of STCi below:

Pros:

• •Provides immediate coverage for short-term health care needs.
• •Offers flexible benefit durations, so you can tailor the perfect policy to your unique situation.
• •Acts as a bridge between traditional health insurance and long-term care insurance.
• •Eases financial burden during recovery periods.

Cons:

• •STCi plans typically only have $100 to $200 per day in coverage, which may not be enough for some.
• •Short-term care plans are typically only good for one year or less.
• •STCi isn’t available in a few states, including some of the most populous states.

Cost of short-term care insurance

As with any insurance, the cost of short-term care insurance will be based on your situation, including factors like your age, health status, coverage limits, and coverage duration. Given the shorter-term nature of STCi, it’s often much cheaper than long-term care insurance. In most cases, you can expect to pay between $65 and $300 per month for $150 per day’s worth of coverage, depending on your age and the type of care you wish to receive.

Applying for short-term care insurance and accessing your benefits

The application process for STCi involves completing an application form, providing relevant medical information, and undergoing underwriting. Insurance carriers assess your health condition and may require medical exams or records to determine eligibility and premium rates.

To make a claim with STCi, you must contact your insurance carrier and provide documentation, such as medical records and bills, to support your claim. The carrier will review the information and, if approved, provide you with the benefits outlined in your policy.

Triggers for claiming STCi benefits may include hospitalization, surgery, rehabilitation needs, or recovery from an illness or injury. Each policy will specify the qualifying events or conditions that allow you to make a claim.

The duration of claimable benefits with STCi varies depending on the policy. Some policies offer benefits for up to 360 days, allowing individuals to receive care during the necessary recovery period.

Wrapping it up: Why should you consider a short-term care insurance policy?

Short-term care insurance can be a valuable solution for individuals who require temporary care and support during recovery or rehabilitation. This may make short-term care insurance a great addition to your health insurance coverage plan. Before you buy a policy, you should consult with a reputable insurance broker. A reputable broker will help get you the best policy for your unique wants and needs.

Elder abuse is a grave issue, and being able to identify and act could make a huge difference in the life of an older adult. In these cases, the perpetrator is generally any person the individual trusts — a family member or caregiver, whether in the home or another setting. This can often make it easier for the abuse to go unreported or unnoticed. Here’s what you need to know about elder abuse, how to recognize it, and how to report and handle it.

Elder abuse definition

According to the CDC, “elder abuse is an intentional act or failure to act that causes or creates a risk of harm to an older adult.” An “elder” refers to a person aged 60 or older. Elder abuse can occur anywhere — in home settings and senior living communities (like nursing homes, hospitals, assisted living communities, and others), and over the phone or computer through scams. The CDC estimates that 1 in 10 older adults become victims of elder abuse at some point, and most abuse cases impact individuals with dementia or other cognitive issues. 

It’s important to note that not all elder abuse cases look the same. Below are the types of elder abuse most commonly seen, as defined by the CDC and NIH. 

Physical abuse

When you hear the term “abuse,” physical abuse often comes to mind. Physical abuse refers to bodily harm caused by hitting, punching, kicking, or other dangerous physical contact. It can also refer to physical or chemical restraints, such as using medications to initiate sleeping or mellow behavior for the caregiver’s benefit. These are most commonly used in medical settings such as nursing homes or hospitals, but this kind of abuse could also include locking an individual in a room. This type of abusive behavior can also happen in a home.

Indicators of physical abuse include unexplained cuts and bruises, if the individual demonstrates signs of trauma, or if they become withdrawn or agitated. 

Emotional or psychological abuse

Emotional abuse refers to using hurtful words, yelling, or threatening, though it could also refer to causing intentional isolation. According to the World Health Organization, this is the most common form of elder abuse. 

Signs of emotional or psychological abuse include withdrawal from favorite activities and changes in mood such as withdrawal or agitation. 

Sexual abuse

Sexual abuse includes “forced or unwanted sexual interaction” and sexual harassment. Bruising and emotional changes are the most common signs of sexual abuse. 

Financial abuse

Financial abuse refers to the unauthorized use of an older adult’s money. Financial neglect is one type of abuse that refers to intentionally ignoring paying an older adult’s necessary bills on their behalf. Financial abuse could also look like financial exploitation, meaning the misuse of the older adult’s assets. Health care fraud also falls under the financial abuse umbrella and refers to overcharging by health care providers. 

The older adult demographic is also a common target for scams, which can come in many forms. Scammers prey on this age group, hoping the victim has less knowledge about technology, and perpetrators often try to instill fear in the individual for their financial gain.

Financial abuse can be difficult to detect, and there may not be obvious signs that abuse is occurring. Unusual activity in your loved one’s bank account could indicate financial abuse.

Neglect or abandonment

Neglect occurs when a caregiver fails to meet an older adult’s fundamental needs. This could look like not attending medical appointments, not providing medications, or not assisting with personal care when needed. It could also refer to the older adult being left home alone despite safety concerns. 

Older adults can also engage in “self-neglect.” This refers to the failure to complete their own basic needs despite being able to do so. 

Signs of neglect or abandonment could be looking disheveled or having an odor, lacking medical equipment (glasses or hearing aids), unsafe living conditions, or frequent falls or wandering incidents. 

How to help if you suspect elder abuse

If you suspect elder abuse or notice signs of abuse, acting quickly is essential. Abuse can have permanent emotional and physical impacts on its victim. Here are important options to help your older adult loved one regain safety.

• Check in privately. To start, check in with your loved one in a private setting. Ask how they are doing and express your concerns. Keep in mind that many victims of abuse find it difficult to talk about their experience, meaning your loved one may not immediately acknowledge the mistreatment.

• Talk to a mandated reporter. If you’re unsure about a potentially abusive situation, you can also speak with a trusted health care provider. Health care providers are mandated reporters, meaning that if they suspect abuse, they must file a report.

• Report abuse to adult protective services. If your loved one lives at home, report your concern to the local adult protective service agency or police. The National Center on Elder Abuse has a state-by-state directory of the appropriate group to call. Reports can be made anonymously. If you feel that your loved one is in immediate danger, calling 911 is always an option. When filing your report, stick to the facts of what you have observed or known, despite the emotions you may be feeling. 

• Call a long-term care ombudsman. Each state has a long-term care ombudsman program. Ombudsmen are advocates for older adults who live in senior living settings. If you suspect abuse at an assisted living facility, nursing home, or medical facility, your state’s ombudsman program helps with the intake and investigation of reports of abuse.

• Connect with an elder law attorney. An attorney specializing in elder law can help you understand laws about the situation. They can also guide you on recourse for financial abuse cases.

It can be difficult to address suspected abuse, especially from another family member. Remember that the priority is helping your loved one live safely and with the respect they deserve. It’s important to advocate for your loved one who may be vulnerable and unable to advocate for themselves. In some cases, especially those of neglect, additional support may be provided to the elder and the caregiver.