Long Term Care Texas

Worksite Education Pays Dividends

2011-09-02T13:12:00.000-07:00

Many businesses have been challenged by the economy and with their benefits. Everyone has felt the pinch as medical insurance and the cost of medical care have increased. Small business owners are seeking ways to attract & retain their top employees. The best way to protect tax deferred savings is to educate employees about long term care planning options. I have been holding workshops for employers and employees so they may learn the best way to protect their families and also, for the employer, how to protect productivity. Several benefit brokers have enlisted my help to bring new solutions to their clients without impacting the budget. They are not waiting for Health Care Reform to change their business. We are taking a proactive approach to help employers get ahead without busting the budget. To learn more send an email to jerry.levy@ltcfp.net

2011-09-02T12:45:00.000-07:00

It was a pleasure working with you. Thank you for walking us through the process. We feel very comfortable about our decision to get long term care insurance. Susan M.

2011-01-22T09:40:00.000-08:00

This has definitely been a year of changes for many of us. I like to start the year with a plan to improve on the last one. Besides the usual proclamations I am finding that folks are concerned about retaining their independence and not being a burden on family. My clients tell me that they do not want to be dependent on government plans for their retirement or care. I have included a link to a short video that addresses planning. After all if you read any of my previous posts, we are all better off with a plan than without one. Here is the link to the video. Let me know what you think. http://tinyurl.com/35kpxwm Just compy and paste in the browser.
I have also included a link below to the book Dignity for Life: 5 Things You Should Know Before Considering Long Term Care Insurance and an insert on the Class Act. web.ltcfp.com/agent/d/jerrylevyltc/DFL.pdf

2009-10-10T15:41:00.000-07:00

I just read a posting from columnist Terry Savage and felt that anyone visiting this blog could also benefit from her comments and her book.

Her weekly syndicated column is "The Savage Truth on Money" and she is a book author too.

On Saturday, October 10, 2009 she was answering a typical question.
Q: Do I really need to think about long-term care insurance? Her answer was a bit long but to give this important subject it's proper perspective she gave her opinion and backed it up with facts. Here it is:
A: Headline: Last week, the Centers for Medicare and Medicaid Services reduced Medicare funding for nursing homes by an estimated $16 billion over the next 10 years. Twenty-four states already have reduced Medicaid funding this year. And $313 billion of additional cuts have been proposed by the administration to fund health care reform.
Message: Don't count on the government to take care of you in your old age! They're already running out of money -- long before the boomers begin to retire. Remember when boomers hit school age and were squashed into modular classrooms? As boomers age, you'll see crowded, modular nursing home rooms -- perhaps a final use for those old FEMA trailers! This is serious, a real warning.
Answer: Consider long-term care insurance now!
The cost of long-term custodial care is the most devastating thing that could happen to your retirement plans -- even worse than a bear market. Yet it is the thing we least want to think about. And boomers haven't been forced to confront this reality, because our parents are living longer, with new hips, knees and heart valves. But eventually, we will all wear out!
This kind of "custodial care" is not covered by Medicare or supplements, although they do cover a limited amount of "skilled" nursing home care after a period of hospitalization. But custodial care means help doing basic activities, such as bathing, dressing, feeding, toileting. This year, it costs nearly $80,000 on average to provide full-time custodial care, at home or in a nursing facility.
Long-term care insurance is not necessarily about nursing homes. In fact, if you have either enough money or insurance against the cost of care, you could get care at home or in your choice of an assisted living facility.
But if you cannot pay for your care, the alternative that Medicaid offers is becoming less and less appealing. Most government-funded care is provided in nursing facilities, not in your home. Those are the places where funding is being cut.
Claude Thau is a long-term care insurance expert who helped create policies offered by some major insurance companies and now helps insurance brokers understand the products. Thau says: "Nursing homes are extremely anxious because of recent reductions in Medicare and Medicaid payments to them, along with the administration's stated intent to squeeze them further to finance health care reform. We can expect nursing homes to lay off staff, cut services, convert to nongovernment funding sources and/or close their doors."
This is reality, not just a "pitch" for long-term care insurance sales. Notes Thau: "LTC insurance is increasingly valuable to be able to cover the cost of quality home care and quality facility care from providers that do not rely upon government subsidies."
In other words, if you want choice of care, you must be able to pay for it!
While full coverage for long-term care is expensive, there are newer policies that will at least contribute to the cost of your care, perhaps for only two or three years of coverage. There are discounts for spouses, or policies that cover both spouses, designed to lower the premiums. It's worth investigating.
There are so many details to this kind of insurance that I devoted an entire section of my latest book -- "The NEW Savage Number" -- to the subject. You can find it now in paperback at bookstores, the library or on my Website, TerrySavage.com.
This is not about selling books -- or insurance! It is about protecting my readers against the devastating costs of long-term care. The message is aimed not only at older boomers, but the younger ones who won't want to place Mom or Dad in a Medicaid-funded nursing home.
And this is especially a woman's issue -- because women live longer, likely alone, and need not only the money, but the "concierge" services to find and schedule caregivers, included with most of these long-term care insurance policies.
I've put my money where my mouth is -- purchasing policies for my parents and myself. I hope it's a huge waste of money -- and that no one I love needs that kind of care. But hope is no substitute for planning. And that's The Savage Truth.
Thank you Terry for the non-political answer to a tough question.

Realizing the value of planning

2009-09-23T08:14:00.000-07:00

Thank you for the birthday wish. I see the withdrawl monthly from my bank account so I am reminded of my policy. My daughter in law told me this weekend that her father is very ill and needs 24hr care. He is in some kind of care facility but wants to come home. The cost of nursing care at home will be more than 200 a day. I was surprised they did not have any kind of long term care ins. I am now so glad and thanks to you that I have my policy.
A.S. in Texas

Note: This is always about peace of mind; for you and your family.

Texas Partnership Plan will benefit you.

2009-06-27T10:03:00.000-07:00

My generation has taken quite of bit of abuse in the media. We are accused of being the "immediate gratification generation". Supposedly, long term financial planning may be waiting for the BestBuy circular on Sunday. I know that this has fueled several popular talk shows like "Dave Ramsey, etc." Those folks are not the ones that I am speaking with. I typically speak with the planners that have assets to protect and don't want to be dependent on family for their long term health needs.
The state legislature passed the Partnership Plan for Long Term Care with the intention of giving citizens an incentive to act responsibly. By working with a partnership certified agent, you can legally protect your assets for your family and provide a safety net for the catastrophic cost of care.
How it works: Say a consumer purchased a long-term care policy with $300,000 in benefits and has $300,000 in assets. He or she enters long term care and uses up the benefits in the policy. At that point, his $300,000 in assets will not be considered when determining if he qualifies for Medicaid. Without the partnership plan, all of the assets must be spent down to the minimum level before any state money could be used. The look back on assets given away is currently 5yrs. "Under a State Long Term Care Partnership Program, an amount equal to the benefits received under of the long-term care insurance policy is disregarded in determining the assets of an individual for purposes of Medicaid eligibility and estate recovery".
Do yourself a favor and speak with an independent agent that is "Partnership Certified" and understand how this will benefit your family.

2008-11-15T10:14:00.000-08:00

I was recently asked by an elder law attorney to speak with the 70 yr old wife of a man that had just entered into an alzheimer memory care facility. She is facing the prospect of spending all of her assets for his care and leaving her impoverished. Because they did not do any LTC planning, she is faced with few options.
Folks, wake up and smell the coffee! It is not a question of, Will it happen? It is more of When will it happen? and for How long? and How much will it cost my family?
Texas is in the process of offering a program that will provide a partnership for those folks willing to take the time to do some long term care planning. I just attended training to be state certified to offer partnership qualified policies. What this means for you is that the state of Texas will provide a safety net for those citizens that take responsibility for purchasing long term care insurance that is age appropriate for the partnership plan. You will be able to legally avoid spending down all of your family's assets. In a nutshell, if you depleted your insurance benefits, you would have state funds available to help provide for your care. Without this partnership, your spouse would need to spend down all assets first. This is a wonderful planning tool that will benefit middle income families. I will update this later when the plan becomes available however, those wishing to take advantage of this opportunity, contact me and I will show you how to design such a plan.

Long Term Care Basics

2008-09-03T19:05:00.000-07:00

Here's what I get asked most often by consumers and business people:
1.
Q:
What is long term care?

A:
It's the care people need when they can’t perform the tasks of ordinary living independently -- things we do each morning, like bathing, dressing, toileting, continence, eating, and moving around. Or, the person may need care and supervision due to a cognitive impairment such as Alzheimer's disease, dementia, or stroke.
2.
Q:
Is long term care insurance appropriate for everyone?

A:
Everyone except (a) those without means who can qualify for Medicaid; (b) those whose lifestyles would be seriously compromised by the monthly premiums, or (c) those rich enough to self-insure.
3.
Q:
What are the different ways in which care is provided?

A:
When people need care for any illness or accident, it may fall into one or more of the following categories:
Acute Versus Chronic Care: Acute care is the type usually provided in hospitals and emergency rooms: treatment of stroke, heart attack, and pneumonia, for example. Chronic care is usually for conditions that are treatable but generally not completely curable: arthritis, diabetes, hypertension, and alzheimers, for example.
Skilled Care: Usually delivered in skilled nursing homes, this type of care can also be received in one's homel. If the skilled care meets strict criteria set forth by Medicare, then the provider is referred to as a skilled nursing facility (SNF). Medicare defines skilled care as services and rehabilitation that require technical or professional personnel such as registered nurses, licensed practical nurses, and physical or occupational therapists.
Non-Skilled Care: Also known as custodial care, this type is provided to persons who need help on a regular basis with activities of daily living -- because of a physical limitation, chronic problem, or a cognitive disorder. The care can be given by any non-skilled individuals including family members.
Long term care insurance may be appropriate for all the above care except skilled care which may be covered by health insurance or Medicare.
4.
Q:
Where is long term care provided?

A:
Less than 20% receive care in nursing homes. Most people prefer to get care at home, adult day care, or assisted living facilities. These are the choices:
In one's own home: Most long term care recipients live with their families. About 1.3 million are cared for at home by paid helpers, who provide skilled or unskilled care with basic personal activities. Another 5.5 million Americans receive unpaid help at home from family members.
Skilled Nursing Facilities: Also known as nursing homes, these institutions are usually comprised of two separate units, one that gives skilled nursing care (which may be covered by Medicare), and one providing non-skilled or custodial care (which may be covered by long term care insurance). The goal of the “Medicare” unit is to provide services needed to rehabilitate patients so they can go home. However, often patients are unable to return home and are moved over to the non-skilled or custodial unit.
Assisted-Care Living Facilities: Also known as assisted-living facilities or residential care facilities, these institutions provide non-skilled care for people who need help with daily living but can also provide much of their own care. These institutions are an excellent alternative to nursing homes. The residents may live in apartments that they can personalize. Some will allow couples to stay together.
Adult Day Care centers: These community-based services were developed to help people stay at home and are the primary choice when one spouse must continue to work. The centers offer custodial care during weekdays and sometimes on weekends too. Remember 39% of all LTC recipients are working age.
5.
Q:
What does long term care cost, and who pays?

A:
The cost varies depending on state of residence and type of care (nursing home, in-home, etc.). Nursing home services currently average close to $60,000 per year in Texas. Costs are projected to rise dramatically in the years ahead.

There are four options for paying. The individual needing care may --

Rely on family (spouse, children, etc). Appropriate only when there is a support system in place with available time, money, and accomodations.
Self-insure and pay for long term care with one's own assets and income. Recommended only for the very wealthy.
Spend down all assets and then qualify for Medicaid. New federal legislation passed in 2005 makes this option more difficult and less attractive than it was in the past.
Transfer a predetermined amount of the long term care risk to an insurance company. In other words, buy a long term care insurance polity. The best option for most Americans.

Can you deduct the cost of Long Term Care Insurance?

2008-08-15T07:20:00.000-07:00

Most individuals do not ask this question but for those that are sole proprietors or partners in a business, they should be asking. I have attached a link to an article that was written in Kiplinger's Financial by Kimberly Lankford that gives a very nice explaination. In a word, YES. The insurance is deductible. Now go read the details and caveats to see how you can take advantage of this. http://www.kiplinger.com/columns/ask/archive/2008/q0814.htm

2008-08-03T13:09:00.000-07:00

Almost everyone that I spoke with today answered the question, "How is your health?" with the answer, "Good!". People frequently ignore their changing health to their detriment. I had one gentleman tell me that his doctor said he was in great shape. However, when I took his medical history I found that the doctor had actually said that he was in great shape considering all the medical problems that he has. We sometimes hear what we want to hear. Any change in your health or medication can make you uninsurable for 90days, 6 months, 1 year, 10 years, or forever.

When I am asked what's the best age to seriously consider long term health care insurance, my answer is always that the younger and healthier applicants get the best options and prices. We are not like a great bottle of wine, we don't usually get better with age. However, like wine, we do hit our prime and then decline in body and spirit. Waiting is rolling the dice on your health changing due to aging, disease, or accidents.
So what to do? Don't ignore your health and protect your assets.