Posts by Romeo Raabe
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If anyone has any questions or confusion on dealing with long term care, or the insurance which pays for it, I am here as a reference and to help.
I am 71, have been helping folks for 30 years with this, and now this is my giving back.
There is no cost to visit and get ideas that may be helpful or save some of your nest egg.
www.TheLongTermCareGuy.com in Green Bay. If you’d like to come in, please call 884-3030 for an appointment. I’ve had both my shots and have HEPA filtration with UVC light in my conference room.
Romeo Raabe
If You are on Medicaid, A Deadline is Rapidly Approaching.
Did you receive a $600 stimulus check a year ago? If You are on Medicaid, A Deadline is Rapidly Approaching.
Did you receive a $600 stimulus check a year ago? It was not considered income when it was received. But now that it’s a year later, if that stimulus check caused you have more than $2000 in your savings, you will become ineligible for Medicaid and lose all benefits.
There is a simple “fix” for this. While Medicaid requires you to cash in life insurance, it allows you to set aside up to $15,000 for burial expenses – if it is in an irrevocable trust. An irrevocable trust is one where, once established, you cannot get your money out of it until it is needed for burial expenses.
How do you get an irrevocable trust?
Attorneys can set these up, but they can charge a lot to do so. Instead, long-term care specialists can set up an irrevocable trust for you with no fees for doing so.
You can let the nursing facility take this money, lose Medicaid eligibility, or move excess dollars to a trust to pay for funeral expenses so your children do not end up having to pay for it themselves when the time comes.
Visit www.thelongtermcareguy.com/strategies/ and scroll down to the section entitled “What Can Be Done to Help Financially When You Already Need Care “. There, you can view a short video which describes this.
How was your Easter?
How Was Your Easter? How were the seniors in your family doing?
It may have been as long as a year or more since family members were with the seniors in their lives. Now that some families are cautiously getting together again, Easter might have been one of first times they have been together in person.
How were the seniors in your family doing? Have things changed since the last time you saw them in person? Did what was supposed to be a joyous occasion leave you feeling concerned? For example, have you noticed that some things they used to do have been neglected, like cleaning or cooking? Maybe self-care has slipped? Are there some memory lapses that are more pronounced now than before? The need for long term care often sneaks up on us until it can’t be ignored any longer.
After seeing loved ones this Easter, you may start to worry about the cost of Long Term Care?
You may start to worry that, because long term care is expensive, paying the care facility bankrupt Mom or Dad. Will they quickly spend down their assets to impoverishment in order to qualify for Medicaid?
There are a number of solutions that can help. To find out if any of them will help in your situation, contact www.TheLongTermCareGuy.com and schedule a meeting to investigate.
Help, ideas, and advice are available. Visit with an expert in how to best help. Call now, (920) 884-3030 and schedule a meeting to investigate the alternatives.
Alzheimer’s May Strike Women and Men in Different Ways
At the end of February, the website HealthDay published an article entitled “Alzheimer’s May Strike Women and Men in Different Ways”. (https://consumer.healthday.com/2-25-alzheimers-may-strike-women-men-in-different-ways-2650728831.html )
Here is a quote from that article: “The ravages of Alzheimer’s may strike later in women than men, but once it takes hold women tend to deteriorate far faster than men, according to a new study. Something known as cognitive reserve helps the aging brain function better for longer, and researchers report that women appear to have more of it than men. But once the reserve runs out, mental decline in women speeds up.”
As you read this, it would be good to ask yourself if you have your Long-Term Care (LTC) insurance yet. Once health problems are on your medical record, it may no longer be available to you.
LTC insurance is a little like car insurance – you have to have the insurance BEFORE the accident.
Is your plan to move in with your children when you need care? Have you discussed this with them? Can they care for you full time and still work to earn a living, and to raise your grandchildren?
Look at some ideas, www.TheLongTermCareGuy.com has a number of short videos. Watch them, then start planning for your care. I’m here to help.
Long-Term Care Insurance: First, You Should Find an Agent: Wall Street Journal
Wall Street Journal: First, You Should Find an “Long Term Care Insurance” Agent
I often cringe when I see a newspaper or magazine article that discusses long-term care because so many include misleading or outdated information. I was pleasantly surprised when I read this Wall Street Journal article. My approach—and my qualifications—are very consistent with what was outlined here.
Wall Street Journal Reports Monday February 8th, 2021
Long-Term Care Insurance: First, You Should Find an Agent
Ask Encore: By Glen Ruffenach
I’m thinking about buying long-term-care insurance. Can you recommend a particular insurer or type of policy?
Actually, your best first step is not to shop for a carrier or policy. Rather, it’s to shop for a knowledgeable, independent agent.
Before we get to the particulars, let me pause and emphasize how important this topic is. One of the biggest financial mistakes that older Americans make is failing to plan for long-term care: what type of help they might need, how long they might need it, and how they are going to pay for it.
“I don’t need Long-Term Care right now, I’ll deal with it when the time comes!”
I have spoken with many retirees through the years who simply are in denial (“I won’t need long-term care”) or are playing a waiting game (“I’ll deal with it when the time comes”). Both attitudes can put you and your savings at risk.
The Department of Health and Human Services, in 2016, estimated that about half of people (52%) who reach age 65 will require some type of long-term care and incur, on average, $138,000 in costs. In 2017, PricewaterhouseCoopers, after examining claims submitted to eight major insurers, put the figure at $172,000.
So, I applaud that you’re thinking about this. But please: Take a step back. Long-term-care insurance, as you’re probably aware, is a ridiculously complicated product, one that comes in many shapes and sizes. As such, an independent agent—one who sells policies from multiple carriers and who specializes in long-term-care planning and insurance—can help you navigate these waters.
How to find such a person? First, there are several educational and training programs for insurance agents and other financial professionals that focus on long-term-care insurance. One of them, Certification for Long-Term Care, has a locator on its website that identifies its graduates across the country.
Second, search online for experts in or near your locale. (Example: long-term-care insurance specialist in your town or city.) And third, ask other professionals—financial planners, accountants, tax lawyers, estate planners—if they have worked with a long-term-care specialist.
Ideally, this exercise will generate several names. The next step—one that, admittedly, will take some time and effort on your part—is sitting down with these individuals and talking about their education and background. Here, what you don’t want, says Bill Comfort, a long-term-care insurance specialist in Durham, N.C., is someone who jumps immediately into policy features and premiums. Rather, you’re looking for an adviser who, first, takes time to understand your situation and needs and, second, can explain how various types of coverage might help.
Of course, you also will want to gauge how much of a “specialist” each candidate actually is. This means, Mr. Comfort says, asking about, among other issues, their experience (How many years have they sold LTC insurance? How many policies a year?); the number of carriers they represent (“captive” or “career” agents typically represent just one insurer); and their ability and/or willingness to sell different types of policies, including both traditional LTC insurance and “hybrid” policies, which combine LTC benefits with, say, life insurance or an annuity. (See a comprehensive list of questions on Mr. Comfort’s website.)
And…see if the agent, at some point, gives you (or directs you toward) a copy of “A Shopper’s Guide to Long-Term Care Insurance.” This 71-page booklet, published by the National Association of Insurance Commissioners, is a terrific resource. More to the point, the introduction reads: “Most states’ laws require insurance companies or agents to give you this Shopper’s Guide to help you better understand long-term-care insurance and decide which, if any, policy to buy.”
Yes, you can find this guide yourself on the association’s website. But an agent who takes pains to share this with you when you first meet could be a keeper.
You’ve planned ahead–or have you?
So, you’ve given the house (or farm or some other assets) to the children long ago so the government will pay for your long-term care, and you’re feeling proud of yourself for having planned ahead. But, I have some bad news for you—did you know that almost no assisted living facilities will accept you if you are on Medicaid? Medicaid payments to facilities don’t cover the cost of providing care, so most assisted living facilities don’t accept Medicaid. You could go into a nursing home because they’re required to accept Medicaid (since they receive Medicare payments for some services) –but you probably don’t want to go to a nursing home. Ok, you think– you can move in with your kids. They have room between classroom space for their kids learning from home, and all the time between their own Zoom meetings to care for you, and don’t mind adding your care to their day. Doesn’t sound likely, does it?
Have you planned ahead for assisted living facilities refusing to accept Medicaid?
This article tells the all too common story of a nursing home being converted to an assisted living facility – the kind of place you won’t be able to go to if your care is being paid for by Medicaid. Nursing homes across the country have been closing. When you need care, if you aren’t able to pay for it and only a nursing home will accept you, your helpers (family or paid) may have to look far and wide to find a place that will accept another patient paying for their care with Medicaid.
People who planned ahead can avoid a nursing home!
Being very wealthy, or having insurance to pay for your long-term care allows you to choose in-home care through an agency or the nicest assisted living facility in town—and you aren’t being a burden on your family. In most cases, I counsel my clients to plan to cover the cost of home care or assisted living, as the great majority of care can be handled there and not a nursing home. Through this, my clients get appropriate coverage that costs less. Contact me today for a free, no obligation discussion of what makes sense for you.
It’s the Holidays, Let’s Talk
How long has it been since you have seen all of the family? How are they doing? Perhaps not as well as last year? Perhaps it’s time to talk.
It’s the holidays, this is the time of year when many families realize a family member is not doing as well as s(he) has in the past, and may need some help. Perhaps s(he) just need help with lawn care or snow removal. It might be the house is not as neat as it always was, or perhaps bills and paperwork are being neglected. Maybe it’s time to talk.
It’s the Holidays, many families realize a family member may need some help
This is not something we look forward to, and it seems the job more often than not falls to the women in the family. Women seem to be overwhelmingly tasked with caregiving. Employers know that the holidays are when female employees often request leave to deal with family issues, making caregiving a workplace issue as well. Wages are sacrificed and productivity falls; seasonal demands may exacerbate the problem. An article in the AARP publication estimated that in 2009, there were 66 million unpaid caregivers in the US, and the number is growing. Unpaid caregivers average 20 hours of caregiving a week.
This caregiving is not without cost. Caregiving takes a toll on the health of caregivers which lingers long after the death of the family member cared for. It also costs real money. In addition to the career and income sacrifices, many caregivers contribute significant dollars while assisting loved ones.
By having a Long-Term Care (LTC) discussion, plans can be made to share the responsibilities. Other family members may discover they can contribute time and resources to help. Perhaps professional caregiving either at home or in a facility is required and planning – even at the last minute – can provide solutions, rather than simply spending available money and hoping to qualify for government assistance. Once financing strategies are discovered, more planning options may become available.
It is the Holidays, family time, perhaps it’s time to talk
The holidays can be an appropriate time to discuss these issues because the family member’s needs might be more apparent. Any time of year can be a good time to consider how the care you may someday need will impact your family as well. Are you prepared to handle your long-term care needs? If you might pay for care, where will the money come from? What will be left for family after your care needs are over? Perhaps you might investigate LTC insurance while you are still healthy so that funding is not an issue when you need care. LTC insurance pays for care in your home, day care facilities, assisted living facilities commonly called CBRF’s or RCAC’s, and traditional nursing homes. Pennies on the dollar now can save hundreds of thousands of dollars later.
Have you ever wondered….
Do you have questions about the cost of long term care?
Do you have questions about the cost of long term care?
Are your clients confused about the many options, how to choose coverage, or if it’s necessary for them?
I’m Romeo Raabe LUTCF, LTCP and I’m known as The Long Term Care Guy–in fact, my website is www.TheLongTermCareGuy.com and I work exclusively on Long Term Care (LTC) issues. Some examples include how to get the most from LTC insurance, how to start a claim, what to do if care is needed and there is no insurance—and much more!
I also offer insurance for LTC and have options most financial professionals are not even aware of. For example, this week I put coverage in place for a couple ages 87 and 84 for less than $90/month a piece.
Even if someone is in care – even if already on Medicaid – I may still be able to help. If you or your clients have questions, feel free to call me at (920) 884-3030. I am here to help anyone dealing with or concerned about LTC.
Contact ROMEO RAABE about the cost of long term care!
PS: There can be huge differences in LTC insurance policies—I can help you understand the differences, and probably even set you up with other strategies most other advisors don’t know about!
CORONAVIRUS AND LONG TERM CARE
COVID-19’s added costs likely will lead to increases in insurance premiums and long-term care costs!
More than 18 million people have been infected by coronavirus worldwide, about a quarter of them in the United States. It is likely to be years before the costs for those who have recovered can be fully calculated, according to Reuters interviews with approximately a dozen physicians and health economists.
These experts point to the potential for billions of dollars in long-term healthcare expenses, as studies of patients with COVID-19 continue to uncover new complications associated with the disease. They say the costs stem from COVID-19’s toll on multiple organs, including heart, lung and kidney damage that likely will require costly care, such as regular scans and ultrasounds, as well as neurologic deficits that are not yet fully understood.
The added costs likely will lead to increases in insurance premiums and long-term care costs. Bruce Lee of the City University of New York Public School of Health estimated that if 20% of the U.S. population contracts the virus, the one-year post-hospitalization costs would be at least $50 billion. This is before factoring in longer-term care for lingering health problems. Without a vaccine, if 80% of the population became infected, that cost would jump to $204 billion.
“On a global level, nobody knows how many will still need checks and treatment in three months, six months, a year,” Marco Rizzi, M.D., a physician in Bergamo, Italy told Reuters. Rizzi has seen nearly 600 people with COVID-19 for follow-up. He is co-chairing a World Health Organization panel recommending long-term follow-up for patients. Even those with mild COVID-19 “may have consequences in the future,” he added.
LTC Comment: Covid-19 hit LTC when it was already down. The perfect storm of an oncoming economic catastrophe and growing long-term health care costs may finish the welfare-financed system. Will private financing markets, including home equity conversion and private LTC insurance, fill the breach?
How will you or your clients pay for their LTC costs?
Assets have lost value, LTC costs are up and likely to go higher. LTC insurance with an automatic 5% compound inflation factor WILL keep up with increasing costs and allow those insured to get the care they need where they want it, instead of relying on a Medicaid nursing home.
Aging in Place: What Every Senior Should Know
Introduction: Aging in America
By 2030 every Baby Boomer will be over 65, and will make up 21 percent of the population. And by 2060, almost 25 percent of Americans will be 65 and older. The aging population will have many far-reaching implications for American society, and how to care for older citizens is one of the most important to plan for and consider now.
Until recently, senior citizens would typically go into an assisted living facility when they became too infirm to care for themselves or an aging partner. But there’s a growing trend for older Americans to stay in their homes throughout the aging process, known as “aging in place.”
There are various reasons for this trend: many people want to stay independent for as long as possible, remain near friends, and stay close to their community. As assisted living costs mount, it can also make financial sense to remain at home as long as possible to delay those costs and save for future health care needs. The Genworth Cost of Care Survey 2018 says that the national median cost for assisted living is $48,000 a year.
Not only does aging in place tend to cost less than assisted living, it’s more…