Medicaid Maze

     Are you a mature American (i.e., age 65 or older), do you care about someone who is, or do you anticipate becoming a mature American yourself one day? If so, then you are in good company according to U.S. Census Bureau statistics. In 1960, there were nearly 17 million mature Americans. Today, there are more than 35 million and by 2010 there will be some 40 million mature Americans. Thereafter, due to the graying of the Baby-Boom generation, we will see that figure jump to 53 million in 2020, and to 70 million in 2030! As this mature population increases, so will the need for Elder Law services.

What is Elder Law?

     Generally speaking, Elder Law is the holistic application of general legal principles to the specific emotional, logistical and financial needs of mature Americans. Many mature Americans are concerned with two fundamental threats to their dignity: (1) becoming incapacitated, and thereby losing control to the court system regarding their personal, health care and financial decisions; and then (2) running out of money due to the catastrophic costs of long-term care, and ending up on welfare. Fortunately, both of these threats may be minimized, or even avoided, through properly coordinated legal and financial planning.

Incapacity Planning

     As the number of birthday candles increase on your birthday cake, so do the odds that you will become incapacitated due to an injury or illness. Whether incapacity strikes suddenly, as with an accident or acute illness, or gradually, as with Alzheimer's, the consequences are the same. Either you will have appointed the back-up decision-makers of your own selection through proper legal plans or, by default, the court system must step in to appoint them for you ... under the ongoing supervision of the court. Note: This default approach will employ at least three lawyers and can be rather expensive and invasive of your privacy. Accordingly, consider this default the lawyer full-employment program.

Long-Term Scare

     Did you know that after age 65 there is a 48 percent chance that you will need care in a skilled nursing facility? After age 80 the odds that you will need skilled nursing care jump to nine in 10, or 90 percent. If you are age 65 and married, the odds are 70 percent that you or your spouse will need skilled nursing care. The average nursing home stay, by the way, is 2.5 years.
     Long-term care is expensive. Nationally speaking, a year in a nursing home is estimated to cost an average of $57,000. Is it any wonder that 50 percent of mature couples become impoverished within a year after either spouse enters a nursing home? The number jumps to 70 percent for widowed or single persons.
     By the way, forget about Medicare paying for your chronic long-term care needs. Medicare only pays for acute nursing home care for up to 100 days, and even then your eligibility and the payments are subject to very strict requirements. Remember, too, Medigap (i.e., Medicare Supplement) policies typically will not pay for your chronic long-term care needs either.
     What about giving away your assets to your loved ones to qualify for Medicaid (i.e., welfare)? Legally speaking, any transfer of assets for less than fair market value may render you ineligible for Medicaid assistance for 60 months or more under the complex and confusing web of Medicaid Regulations. And transferring assets can be hazardous for other reasons. What will happen to you if you are rendered ineligible for Medicaid assistance, AND those to whom you transferred your assets lose them ... whether through squandering, divorces, lawsuits or bankruptcies?

Long-Term Solutions

     The key to proper long-term care planning is to plan now rather than react later. There are numerous legitimate strategies to preserve more of your assets ... if you have time to plan. One of the best strategies may be to insure your financial security through proper Long-Term Care Insurance.