The Bench & Bar magazine is published to provide members of the KBA with information that will increase their knowledge of the law, improve the practice of law, and assist in improving the quality of legal services for the citizenry.
Issue link: https://kentuckybenchandbar.epubxp.com/i/132126
FEATURE: KENTUCKY'S ELDER LAW FUNDING LONG TERM CARE WITHOUT MEDICAID By Eileen Walsh and Whitney M. Wilson There is no disputing that ever expanding life expectancy is the new normal for Americans. Data for the year 2010 shows an increased life expectancy for men of 76.2 and an increased life expectancy for women of 81 years.1 With this "new normal" comes the increased likelihood that a person will need some level of long term care at some point in their lives. While everyone expects to live to the age of 75, 80, and older without the need for any long term care assistance, the reality is the odds are against us doing so. This article will define the term "long term care" and focus on the importance of having the discussion of how to fund long term care for ourselves, our families, and clients. This article will also highlight some ways people choose to fund long term care without Medicaid. This is only an introduction, because the benefits, complexities, nuances, and strategies of each method cannot be thoroughly addressed in just one article. Moreover, it is important to note that what works for one family may well not work for another, and it is certainly not unusual for a person or family to utilize multiple strategies in tackling the issue of funding long term care. WHAT IS LONG TERM CARE? 22 Long term care is really an umbrella term for services needed to meet the medical and nonmedical needs of persons, who due to age or disability have lost some capacity for selfcare. Long term care, in simple terms, refers to the assistance we need when our age or health or both, prevents us from functioning 100% on our own. The term long term care is not just limited to residential nursing B&B; • 05.13 home care. More and more people are "aging in place" and long term care takes place wherever people are and wherever they live, whether it is in their own home, an assisted living facility, or some other living arrangement. The assistance offered through long term care may encompass a wide array of healthcare services such as wound care, injections, or medication assistance, as well as personal care assistance with activities of daily living (ADLs) such as bathing, dressing, toileting, feeding, and ambulation. Many people will utilize a variety of care services as their care needs change over time. The goal of long term care is generally not to "cure" an illness or disability, but is to maximize a person's functioning and independence. WHY TALK ABOUT LONG TERM CARE? The Department of Health and Services estimates that 70 percent of people over the age of 65 will need some type of long term care at some point in their lives. Even without the statistics, common sense tells us that with the aging process it is normal to lose some ability to function, and that continues as people continue to age. It is also important to note that many Americans have a family member or loved living with a diagnosis of Alzheimer's disease. In view of the statistics and our own life experiences, the topic of long term care planning is an important one that should be discussed and addressed as part of a normal life planning process. We like to say we help clients "plan to live." FUNDING LONG TERM CARE WITHOUT MEDICAID COST OF LONG TERM CARE The median monthly rate for licensed personal care services and home health aide services in Kentucky in 2012 was $3,241.00 (annual median cost of $38,896). The median monthly rate for an assisted living facility (private, one bedroom) in Kentucky in 2012 was $2,741.00 (annual median cost of $32,892.00). For a nursing home (semi-private room), the median monthly rate was $5,750.00 ($69,000.00 annually).2 It is not unusual for the cost of care to run significantly higher than these reported cost figures. And what of the significant hidden cost to families where a family member or friend acts as an unpaid caregiver for a loved one? Besides the tremendous emotional and physical toll a caregiver may suffer, there is now evidence that caregivers and their families suffer a devastating financial blow. A Met Life study determined that caregivers lose an average of $659,139.00 in lost wages, pension, and Social Security benefits. 3 MEDICARE Many Americans believe that Medicare will pay for all their long term care needs, when in fact it provides limited coverage. Because of this broad misperception, it is worthwhile to discuss what Medicare is and is not. In general terms, Medicare is a national health insurance program and persons entitled to Social Security retirement and who are 65 years of age and older and persons entitled to Social Security disability benefits for not less than 24 months are eligible to participate in the program. There are other classes of persons eligible to participate, such as persons receiving railroad retirement benefits and individuals suffering from certain medical diagnoses. Those who are not otherwise eligible for