How to Pay For Long-Term Care

by Kimberly Jahns

Most of us don’t want to think about long-term care; it’s not a fun topic. However, it’s to our benefit to start considering long-term care options sooner rather than later so we can receive the care we want, if it were to become necessary.

What is Long-Term Care?

Long-term care is typically needed when someone requires the help of someone else to perform activities of daily living; this person will need to receive long-term care to stay safe and remain healthy for as long as possible. Long-term care services are often provided in a patient’s home or in a facility, such as assisted living or a nursing home.

Who Pays for Long-Term Care?

Long-term care is very expensive. Unfortunately, a large percentage of seniors will go broke paying for care out of pocket before subsidizing their costs. Paying out of pocket may make it difficult to leave any assets to your spouse, children, or grandchildren.

Long-term care costs can be subsidized by Medicare, Medicaid, long-term care insurance (LTCI), or the VA Aid and Attendance benefit. Medicare and the VA only cover a small percentage of cases, which leaves LTCI and Medicaid as the two primary sources.

Long-Term Care Insurance (LTCI)

LTCI covers many long-term care options, like nursing homes, assisted living, and home health care. The price of LTCI has risen in recent years, but long-term care has also continued to go up; if you’re able to plan out far enough ahead, LTCI costs will actually be less than what the potential cost of a nursing home or assisted-living facility will be.

• Are able to preplan. You’re healthy and not in need of immediate care. • Want to protect their assets. You may have a large estate or many assets that you’d rather pass down to your spouse or loved ones. • Want to create a legacy. You hope to leave your children and grandchildren with financial stability with your assets.

What About Medicare?

Many assume Medicare will help them pay for the care they need in the future because Medicare is only, with few exceptions, for those 65+. However, this federal program will not pay for longterm care and was designed for some medical costs for short-term stays in a hospital or nursing home for hospitalrelated care.

What about Medicaid?

Medicaid pays for over 60 percent of all long-term care costs. This federal program was designed specifically for long-term care. The only problem is that you have to fit within Medicaid’s strict guidelines. It’s important to work with a planning professional who specializes in long-term care and knows Medicaid’s rules.

There are strategies that seniors can use to help them achieve Medicaid eligibility without depleting all their countable assets. Legal or financial products are often involved.

Using an Irrevocable Trust

If you’re planning at least five years before needing care, then an irrevocable trust is a great way to plan on using Medicaid coverages in advance. Essentially, a trust allows you to wrapper your assets and shield them from creditors, so if care becomes necessary, your asset list has already been minimized outside of the five-year look-back period.

Using a Medicaid Compliant Annuity (MCA)

If your loved one requires care immediately, they may be able to

protect countable assets by purchasing a Medicaid Compliant Annuity (MCA).

This innovative product helps you shift items from the asset column into the income column in order to help you qualify for benefits. Once you’re within Medicaid limits, Medicaid will subsidize the cost of care and any at-risk assets will be considered protected.

An MCA can help you:

• Reduce assisted-living or nursing-home costs. • Accelerate Medicaid benefits for your loved one. • Spend down excess countable assets. • Preserve your loved one’s nest egg.

There are ways to use MCAs for both spouses and single individuals, and it’s an especially great tool if you failed to plan ahead of time. However, you will want to work with a financial planner or elder law attorney to ensure you fit Medicaid’s strict guidelines so you can become Medicaid eligible as soon as possible. at (844) 294-3938. Our team can answer your questions or offer you a free no-obligation consultation with a local professional in our network. For more free goodies, go to seniorcarecounsel.com.

Kimberly Jahns is a Senior Care Counsel writer. Senior Care Counsel is devoted to helping seniors and their families avoid the financial devastation associated with long-term care. We help protect their assets from care costs by ensuring they have the information, resources, and professional guidance they need.

Senior Care Counsel

(844) 294-3938 seniorcarecounsel.com

ADVANCE HEALTHCARE DIRECTIVES

An advance healthcare directive is also known as a living will. It’s important to put your legal and medical preferences in writing. Visit the Legal category in the General section for assistance to learn about the important options you have to protect your wishes if and when you are unable.

WISCONSIN MEDICAL SOCIETY

(866) 442-3800 wisconsinmedicalsociety.org

EMERGENCY PREPAREDNESS

Have a plan in place before an emergency. Communicate your plans with family, friends, and neighbors.

PACK AN EMERGENCY KIT

with first aid supplies, blankets or sleeping bag, battery-powered radio, flashlights, extra batteries, and weather radio.

If you have a pet, plan ahead for pet needs, including supplies of food and water and a pet carrier.

Have prescription medications and any special medical supplies ready.

Place the following items in a plastic, lidded container: • Three-day supply of water (about five gallons for each person) • Three-day supply of nonperishable food • Three-day supply of high-energy foods, such as granola bars, trail mix, peanut butter, jelly, and crackers

You can find more information on emergency plans and supply kits at ready.gov.

ESTATE PLANNING

See also Legal category in the General section.

HASKINS SHORT & BRINDLEY, LLC 5113 Monona Dr., Monona 53716 (608) 237-6673 receptionist@hsbelderlaw.com hsbelderlaw.com

Haskins Short & Brindley, LLC specializes in providing professional and compassionate legal services in the areas of estate planning and elder law. Substantial expertise includes powers of attorney, wills, trusts, guardianships, medical assistance planning (Medicaid), veterans benefits assistance, and estate administration (probate).

NENNIG LAW OFFICES, LLC

(608) 661-4333 protectingfamilies.net

WILSON LAW GROUP, LLC 7633 Ganser Way, Ste. 100 Madison 53719 (608) 833-4001 mail@wilsonlawgroup.com wilsonlawgroup.com

You worked hard all your life to accumulate assets. We will ensure that you pass on your legacy to your family in the manner that you desire, rather than have your assets be consumed by taxes, predators, and probate.

WISPACT SPECIAL NEEDS TRUSTS

(608) 268-6006 wispact.org

FINANCIAL SERVICES

FINANCIAL ABUSE SPECIALIST TEAM (FAST) HELPLINE

(608) 261-7326 danecountyhumanservices.org

MARY’S DAUGHTER LLC

WISCONSIN DEPARTMENT OF AGRICULTURE, TRADE AND CONSUMER PROTECTION Bureau of Consumer Protection 2811 Agriculture Dr., PO Box 8911 Madison 53708 (800) 422-7128 datcphotline@wi.gov datcp.wi.gov

Do you have an unresolved disagreement with a business? Do you have questions about a bill, contract, or your rental agreement? The Bureau of Consumer Protection mediates consumer complaints and helps consumers learn about their rights. Visit our website or contact us to file a complaint or obtain an informational brochure, like the Wisconsin Consumer Guide or the Landlord Tenant Guide.

FUNERAL PREPLANNING

Important piece of the aging process but often overlooked or neglected. Visit with professionals to know your options so you can make decisions rather than having decisions made for you by others.

GUNDERSON LIFE CELEBRATION CENTERS 5203 Monona Dr., Madison 53716 (608) 221-5420 gundersonFH.com

Prearranging is simple and the benefit to loved ones is well recognized. Preplanning allows you to express your own wishes and prearranging removes the financial burden from your family. Your funeral plan is transferable in case you move away. By relieving your family of decisions at a difficult time, you are showing your love and respect for their needs.

The floating comfort-height toilet with large wall-mounted controls located near the stylish grab bar and the zero-clearance shower enclosure ensure long-term bathroom access and functionality.

Universal Design Principles

WILL OPTIMIZE YOUR LIVING SPACE

by Chad Speight

Universal Design supports aging in place gracefully for family members and accommodations for guests who are physically challenged in some way by incorporating common sense solutions for better living. The idea is to create spaces that are easier and safer to live in, allowing all occupants to maintain maximum mobility and independence.

When considering the function and design of your living spaces, it’s helpful to review the 7 Principles of Universal Design as articulated by the National Association of the Remodeling Industry (NARI).

Principle 1: Equitable Use

Design is useful and marketable to people with diverse abilities.

Principle 2: Flexibility in Use

Design accommodates a wide range of individual preferences and abilities.

Principle 3: Simple and Intuitive Use

Use of design is easy to understand regardless of the user’s experience, knowledge, language skills, or current concentration level.

Principle 4: Perceptible Information

Design communicates necessary information effectively to the user regardless of ambient conditions or the user’s sensory abilities.

Principle 5: Tolerance for Error

Design minimizes hazards and the adverse consequences of accidental or unintended actions.

Principle 6: Low Physical Effort

Design can be used efficiently and comfortably with minimal fatigue.

Principle 7: Size and Space for Approach and Use

Appropriate size and space is provided for approach, reach, manipulation, and use regardless of the user’s body size, posture, or mobility.