Nebraska Elder Law
Elder law is another aspect of estate planning, focusing primarily on the needs of families and individuals as they age. Issues of aging include senior housing and home care, long-term (or nursing home) care, guardianships and health care documents, Medicare and Medicaid.
Senior Housing & Long-Term Care Options
The Long Term Care Dilemma
As our population ages, more and more of us confront elder law-related issues, whether for ourselves or our parents. One of the most pressing issues is long-term nursing home care, which usually is not covered by traditional health insurance. Depending on where you live and the level of care needed, nursing home care can cost from $35,000 to $150,000 a year. The average stay is slightly more than three years. Most people end up paying for nursing home care until their personal (or family) assets are depleted, then they may qualify for Medicaid to pick up the cost.
Careful planning, however, can help protect your assets, whether for your spouse or for your children. The belt-and-suspenders approach is to purchase long-term care insurance while you are healthy enough to qualify, and to make sure you receive the benefits to which you are entitled under Medicare and Medicaid.
Long Term Care Wealth Transfer Planning
It used to be that, if you were concerned about what might happen if you or your spouse got sick and had to go into the nursing home, was a question that could be addressed separately from your wealth transfer planning. That is no longer the case. Back in February 8, 2006, the Deficit Reduction Act of 2005 (DRA) was signed into law. The DRA has had a substantial impact upon what can and cannot be done to plan for a long term stay in a nursing home. In order for you to have the most flexibility in that planning, you must now consider the possibility of you going to a nursing home at least five years before it happens. It also requires that your long term care planning and your estate planning be coordinated. If you have not started planning soon enough or you do not have the proper language in your documents, you may be extremely limited in the options you have available to you when it come time to enter into the nursing home.
We can assist you in that planning all the way from the initial planning five or more years in advance right up to the preparation of a Medicaid application and any subsequent appeals which may be needed. We have been successfully assisting clients with this planning since it became necessary back in 2006 and we continue to study the landscape to keep abreast of the latest changes in this newly developing area.
Clients are frequently confused over the differences between Medicare and Medicaid. Though their names are very similar, the programs are quite different. Medicare is an entitlement program, a federal health insurance program in which most people enroll when they turn 65 years old. There are no financial qualification rules. Medicare has two primary parts: Part A and Part B.
Medicare Part A covers in-hospital care, extended care after a hospital stay, some home health care services, and hospice services. The rules for nursing home coverage are very strict and, in fact, Medicare pays for less than 9 percent of nursing home care in this country.
Medicaid, is a joint federal-state program, subject to certain federal requirements, each state implements its own regulations on how the program is managed. Medicaid is not an entitlement program like Medicare, but rather a form of welfare. Medicaid eligibility is determined after the proper application is submitted to the state. There are many Medicaid insurance programs available in Nebraska, from basic medical coverage to nursing home programs. Information about Medicaid for long-term care in a nursing home or community setting, can be found on the Nebraska Medicaid Program website.
The Nebraska Department of Aging provides a wealth of information for seniors and care givers.
We assist seniors and their families in making the tough decisions regarding long-term care planning, including whether Medicaid eligibility may be an option.
Senior Housing Options
Helping a parent move to senior housing can seem more intimidating than orchestrating a rocket launch. The death of a spouse, declining health or safety concerns can trigger the need to move. The first phase comes with the realization that what has been home is no longer suitable. Emotional ties to a place are hard to overcome. Finding a new home that is appealing and appropriate is no easy task, and neither is culling through a lifetime’s accumulation of “stuff.”
Here are some tips to help make the transition easier:
- Plan ahead. Don’t wait for a health crisis to start the process. The smoothest transitions occur when the person moving is in the driver’s seat.
- Get a full assessment of the current situation. Physical care needs and financial resources are where to start. Consider the costs of staying in place, including renovation and ongoing maintenance. Add the cost of rising utility bills and taxes, and don’t forget transportation and food. Make a list and decide whether it’s cheaper to stay or move to a community designed for seniors.
- Take a multi-phase approach. Seniors often take longer than a year to actually make the move.
- Fully explore new housing options. Senior living offers a broader range of options than ever before.
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